The UK’s top financial regulators have opened a joint consultation on tokenized wholesale markets, signalling a push to integrate blockchain-based infrastructure into the country’s financial system.
In a statement released Monday, the Financial Conduct Authority and the Bank of England called on banks, investment firms, fintech companies, and market infrastructure providers to submit feedback on proposed rules tied to tokenized securities and digital settlement systems.
Bank of England, FCA launch consultation on tokenized UK wholesale markets
— Fintech Onchain (@Fintech_onchain) May 18, 2026
Regulators Call for Industry Feedback
The consultation forms part of the UK government’s Wholesale Financial Markets Digital Strategy, which identified tokenization as a major opportunity for improving financial market efficiency, particularly in post-trade operations and collateral management.
Regulators said the current review will focus on tokenized versions of traditional financial assets such as bonds, equities, and fund units, though the scope could later expand to other asset classes.
Industry participants have until July 3 to respond before regulators move into the next phase of consultations and workshops.
Meanwhile, The U.S. Securities and Exchange Commission (SEC) has released comprehensive guidance confirming that tokenized securities remain subject to federal securities laws regardless of their digital format.
Regulators expand tokenization plans
The latest consultation builds on several ongoing UK initiatives aimed at testing blockchain technology in regulated financial markets.
The FCA and BOE said distributed ledger technology could streamline fund management processes, improve settlement efficiency, and open access to new forms of investment products.
One of the key projects already underway is the Digital Securities Sandbox, a regulated testing environment allowing firms to experiment with issuing, trading, and settling tokenized securities. According to the regulators, 16 firms have already passed the first stage and are preparing to launch live operations.
The consultation also covers prudential treatment, settlement assets, tokenized collateral, and market infrastructure standards for digital securities. Officials said feedback gathered from the process will help shape a broader cross-authority roadmap for digital wholesale markets expected later in 2026.
UK moves toward round-the-clock settlement
Separately, the Bank of England announced plans to explore extended operating hours for its RTGS and CHAPS payment systems, potentially moving toward near 24/7 settlement services.
The central bank also confirmed plans to launch a synchronization service by 2028 aimed at supporting tokenized assets used as collateral in central bank operations and central counterparties.
Meanwhile, the FCA recently introduced new rules supporting wider adoption of tokenized funds, including optional direct-to-fund dealing structures and guidance for maintaining investor records on blockchain networks.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools
