The UK’s Financial Conduct Authority and Bank of England have released a joint “Call for Input” focused on tokenisation in wholesale financial markets. The goal is to build a clear regulatory framework for how tokenised assets, built on distributed ledger technology, should be treated when it comes to collateral, settlement, and existing legal structures. Responses are open until July 3, 2026, with a feedback statement expected in the summer of that year.
What the regulators are actually asking
The FCA and BoE are trying to answer foundational questions about how tokenised versions of traditional financial instruments fit within the UK’s existing regulatory perimeter. The joint initiative specifically zeroes in on three areas: how regulators should treat tokenised exposures, how tokenised assets function as collateral, and how settlement instruments work in a DLT-native environment.
The UK’s Digital Securities Sandbox, already operational, currently supports 16 firms engaged in live issuance and settlement of tokenised securities.
The infrastructure play: near-24/7 settlement
The Bank of England is planning to extend operating hours for its Real-Time Gross Settlement system, known as RTGS, and the associated CHAPS payment system to near-24/7 availability. This has implications for cross-border payments, where time zone mismatches have historically created delays and added costs.
The bigger picture: UK as a tokenisation hub
UK government policy is exploring the possibility of sovereign debt issuance through DLT, which would mean gilts could be issued, traded, and settled on distributed ledger technology. Government policy also aims to regulate systemic stablecoins in a manner similar to traditional bank deposits, implying they would sit within the banking regulatory framework.
What this means for investors
The 16 firms already operating in the Digital Securities Sandbox represent early movers who will have a significant voice in shaping whatever final rules emerge. The feedback window runs until July 2026, with a response expected that summer, meaning actual rulemaking likely won’t begin until late 2026 at the earliest.
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