In May 2026, the FCA and the Bank of England published a joint call for input on the future of tokenization in UK wholesale markets, seeking industry views on the benefits, priorities, and ba
In May 2026, the FCA and the Bank of England published a joint call for input on the future of tokenization in UK wholesale markets, seeking industry views on the benefits, priorities, and barriers for tokenized securities so regulators could give firms the clarity needed to invest and scale up. The feedback statement is now out.
The authorities received 123 responses, including from industry bodies, firms, and legal academics. Among the named respondents are @hedera, @Ripple, @chainlink, @coinbase, and the @StellarOrg Development Foundation, spanning both blockchain infrastructure providers and major crypto exchanges.
Most respondents agreed that post-trade is the main opportunity, particularly improving how collateral moves between parties.Potential benefits cited include 24-hour trading, atomic settlement, greater collateral mobility, and fewer reconciliations. The FCA noted that tokenized collateral could improve collateral velocity and support real-time margin calculations, and that tokenized money market funds could potentially be used as collateral without being liquidated.
Interoperability was also identified as a major concern, with respondents calling for coordinated work across traditional and tokenized infrastructure, different blockchains, and jurisdictions. The industry asked for interoperability to be carved out as a standalone workstream within the forthcoming roadmap.
The feedback showed broad support for the regulators' approach, but respondents called for faster progress, clearer timelines, and a move from pilots to permanent market infrastructure.Firms urged regulators to move beyond sandboxes, with a recurring request for a long-term model for digital securities settlement after the Digital Securities Sandbox.
On regulation, the FCA said it remains committed to a technology-neutral approach based on the principle of "same risk, same regulatory outcome." Notably, the regulators acknowledged that the industry is better positioned to set technical blockchain standards rather than having them prescribed from above.
The FCA said the roadmap will set out specific workstreams and target dates, covering areas including digital securities issuance and settlement, tokenized assets and collateral, access to central bank money settlement, market functioning, custody of relevant specified investment cryptoassets, and the Treasury's Digital Gilt Instrument pilot.
The Bank and the FCA continue to work with 16 firms on the live issuance and settlement of tokenized assets through the Digital Securities Sandbox.The Bank is also committing to launch a live synchronization service targeted for 2028, working to enable tokenized equivalents of already eligible assets to be used as collateral both at central counterparties and in its own central bank operations.
Sources:FCA Feedback Statement FS26/1: Tokenisation in Wholesale MarketsBank of England: FCA and BoE Set Out Shared Vision for Tokenisation in UK Wholesale Markets
