The Financial Conduct Authority and the Bank of England have opened a joint consultation on tokenized UK wholesale markets.
Summary
- The FCA and Bank of England want market feedback before setting a digital wholesale roadmap.
- The consultation covers tokenized securities, collateral, settlement tools and market infrastructure rules.
- crypto.news reported the UK is also aligning stablecoins and tokenized deposits with payment rules.
The call asks banks, investment firms, asset managers, trading venues, post-trade firms and fintech companies to share views on market rules and infrastructure.
The consultation focuses on tokenized securities, including bonds, equities and fund units. Regulators said firms want more certainty on prudential treatment, tokenized collateral and settlement instruments as adoption grows. Feedback closes on July 3, 2026.
Sandbox testing moves tokenization beyond pilots
The review runs alongside the Digital Securities Sandbox, where the FCA and Bank of England are working with 16 firms on live issuance and settlement of tokenized assets. The sandbox gives firms a controlled space to test distributed ledger technology in regulated market infrastructure.
The regulators said tokenization can make issuing, trading and settling assets faster and more efficient. FCA markets director Simon Walls said, “Tokenisation has the potential to transform wholesale markets,” while Bank of England Deputy Governor Sarah Breeden said the next task is moving “from pilots to production.”
Settlement and fund rules form part of the plan
The Bank of England also published a consultation on extending RTGS and CHAPS settlement hours. The staged plan includes weekend and longer daily operating windows, with the long-term goal of moving toward near 24/7 settlement.
The Bank also plans to launch a live synchronization service targeted for 2028. It is working to allow tokenized versions of already eligible assets to be used as collateral at central counterparties and in central bank operations.
The FCA is also reviewing how client asset rules may need to change after industry feedback. It recently published a policy statement on fund tokenization, showing that tokenized funds are now part of the wider UK market plan.
UK digital asset policy widens
The consultation fits into a broader UK digital finance push. crypto.news recently reported that the UK Treasury wants stablecoins and tokenized deposits regulated under a single payments framework, supported by Bank of England and FCA oversight.
That same report said the Digital Securities Sandbox is being expanded to include tokenized deposits and regulated stablecoins as settlement assets. The new wholesale market consultation now adds another layer to that work by focusing on securities, collateral and post-trade systems.
