The Financial Conduct Authority (FCA) and the Bank of England have published a shared vision for tokenisation in UK wholesale markets, alongside a Call for Input seeking industry views on where existing rules and infrastructure support or constrain the technology. Feedback closes on 3 July 2026.
The two institutions said firms had asked for more certainty on regulation and infrastructure as tokenisation grows. In response, the joint framework sets out the regulators’ approach on prudential treatment, tokenised collateral and settlement instruments, the areas where industry said it wanted the most clarity.
The FCA also said it would consider how its approach to client asset rules may need to evolve based on feedback.
Supporting measures from the Bank and PRA
The announcement arrived alongside a package of related actions. The Bank of England published a consultation on extending Real-Time Gross Settlement (RTGS) and Clearing House Automated Payment System (CHAPS) settlement hours, setting out a staged approach towards near 24/7 settlement, including weekend and extended daily operating hours. It also committed to launching a live synchronisation service targeted for 2028, and to working on enabling tokenised equivalents of already eligible assets to be used as collateral at central counterparties and in its own operations.
The Prudential Regulation Authority (PRA) published Dear CEO letters updating guidance on the prudential treatment of tokenised asset exposures and on innovations in deposits, e-money and stablecoins.
Sarah Breeden, deputy governor for financial stability at the Bank of England, said: “The task now is for public and private sectors together to build on these strong foundations, moving from pilots to production to support financial stability and sustainable growth.”
The coordinated stance across the conduct regulator, central bank and prudential supervisor lowers execution uncertainty for firms already investing in digital wholesale infrastructure.
The Bank and FCA continue to work with 16 firms on live issuance and settlement of tokenised assets through the Digital Securities Sandbox. The Bank’s infrastructure work is also supporting HM Treasury’s pilot issuance of a digital gilt instrument, known as DIGIT. The FCA published a separate policy statement on fund tokenisation in April. A feedback statement on the wholesale-market Call for Input is due in the summer.
