Catenaa, Tuesday, May 26, 2026- The Bank of England and Financial Conduct Authority launched a joint consultation outlining a “shared vision” for tokenized wholesale financial markets, as Britain accelerates efforts to move blockchain finance from pilot programs into mainstream financial infrastructure.
The regulators issued a joint Call for Input seeking industry feedback on rules surrounding tokenized assets, settlement systems, collateral management and prudential treatment inside distributed ledger-based financial markets.
Officials said the initiative aims to give firms greater legal and operational certainty as tokenization expands across banking, trading and settlement systems.
Sarah Breeden, deputy governor for financial stability at the Bank of England, said public and private institutions should build on existing foundations to support financial stability and sustainable economic growth as tokenized markets mature.
Simon Walls, executive director of markets at the FCA, said tokenization could fundamentally reshape how assets are issued, traded and settled.
The Bank of England also confirmed plans for a live synchronization service targeted for launch in 2028 while considering extended RTGS and CHAPS settlement hours toward near round-the-clock operations.
Officials further backed HM Treasury’s planned pilot issuance of a tokenized digital gilt instrument known as DIGIT.
The regulators said they are already working with 16 firms through the UK’s Digital Securities Sandbox on live issuance and settlement of tokenized assets.
The announcement follows increasingly softer regulatory signals from British authorities toward stablecoins and digital asset infrastructure.
Breeden recently said the central bank was reviewing whether earlier proposed stablecoin reserve requirements and retail holding limits had been overly restrictive after industry criticism.
Meanwhile, Bank of England infrastructure director Sasha Mills recently described stablecoins as a potential new form of money and said applications from major stablecoin issuers could begin later this year.
The UK is positioning itself as a major regulated hub for tokenized financial markets, stablecoins and blockchain-based settlement infrastructure.
