UK Regulators Outline Tokenisation Framework
Analysis based on 6 articles · First reported May 18, 2026 · Last updated May 19, 2026
The joint initiative by the United Kingdom — Financial Conduct Authority>>> and the United Kingdom — Bank of England>>> to clarify tokenisation regulation is expected to boost confidence among financial firms in the United Kingdom>>>. This will likely lead to increased adoption of distributed ledger technology, streamlining wholesale markets, reducing costs, and enhancing market efficiency and resilience. The extension of Real-time gross settlement>>> and CHAPS>>> operating hours by the United Kingdom — Bank of England>>> will further support cross-border payments and new settlement models, positively impacting financial market infrastructure providers and users.
The United Kingdom — Financial Conduct Authority>>> and the United Kingdom — Bank of England>>> have jointly unveiled a shared vision and launched a public consultation on the future of tokenisation in UK wholesale markets. This initiative aims to provide regulatory clarity and support the adoption of distributed ledger technology (DLT) for issuing, trading, and settling assets. Key areas addressed include prudential treatment, tokenised collateral, and settlement instruments. The regulators are seeking industry feedback to shape a joint roadmap for digital wholesale markets. Additionally, the United Kingdom — Bank of England>>> is consulting on extending Real-time gross settlement>>> and CHAPS>>> settlement hours to near 24/7, and the United Kingdom — Prudential Regulation Authority>>> has issued updated guidance on tokenised asset exposures and stablecoins. This collaborative effort, championed by figures like Simon Walls>>> and Sarah Breeden>>>, is designed to enhance market efficiency, reduce costs, and ensure the United Kingdom>>> remains a leader in global wholesale markets.
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