UK Tokenization Transitions to Regulatory Framework and Industry Consultation

Tokenization in the UK is moving from “interesting pilot” to “regulatory direction.” 🧩🇬🇧

The Bank of England and the FCA just published a joint statement outlining a shared vision for tokenization in wholesale markets - aiming to give firms more certainty to invest and build.
They frame tokenization as a way to streamline issuance, trading, and settlement, with potential benefits like lower costs, reduced risk, and new market functionality.
Notably, they’re asking for industry input now, with a feedback statement expected this summer - a clear signal they want the market’s practical realities on the table. 🗣️
Alongside that: BoE is consulting on extending RTGS/CHAPS hours toward near 24/7 settlement, and the PRA is updating guidance on tokenized asset exposures plus innovations in deposits, e-money, and stablecoins.
The FCA also flagged that client asset (CASS) treatment may need to evolve based on industry feedback - an area many platform operators will watch closely.

If wholesale rails go closer to 24/7, what breaks first: ops, liquidity management, or the current settlement playbook? 🤔

#Tokenization #CapitalMarkets #FinTechRegulation