FCA and Bank of England Outline Joint Vision for Tokenised UK Financial Markets
The Financial Conduct Authority and the Bank of England have unveiled a joint roadmap for tokenisation in UK wholesale markets, signalling a major step towards integrating blockchain technology into mainstream financial infrastructure.
The Financial Conduct Authority and the Bank of England have set out a joint strategy to support the development of tokenised financial markets in the UK, as regulators seek to establish clearer frameworks for digital asset infrastructure and blockchain-based settlement systems.
In a statement published on Tuesday, the two institutions said tokenisation could “transform wholesale markets” by improving efficiency, reducing operational friction and modernising how securities are issued, traded and settled.
The roadmap outlines a long-term vision for integrating distributed ledger technology into core areas of financial services, including collateral management, fund servicing and wholesale payments infrastructure.
The regulators said industry participants had requested greater certainty around regulation and operational standards as tokenisation evolves from pilot programmes towards broader commercial adoption.
“Firms need more certainty on regulation and infrastructure as tokenisation grows,” the FCA and Bank of England said in the statement.
The Bank of England is also considering extending settlement operating hours towards near 24-hour availability to accommodate future digital market activity, while policymakers are reviewing prudential treatment and custody rules for tokenised assets.
The announcement forms part of the UK’s wider ambition to position itself as a leading global hub for digital finance and regulated blockchain innovation. Market participants have increasingly argued that tokenisation could improve liquidity and reduce settlement delays in traditionally fragmented private and wholesale markets.
The UK’s Digital Securities Sandbox, launched to allow firms to test tokenised securities infrastructure within a controlled regulatory environment, currently includes 16 participating companies.
Analysts said the joint initiative reflects growing regulatory acceptance that tokenisation is moving closer to mainstream adoption within institutional finance, particularly across fixed income, private markets and alternative assets.
