The Bank of England and Financial Conduct Authority (FCA) have set a July 3 deadline for feedback on a new roadmap to integrate tokenization into UK wholesale markets, including plans for near 24/7 settlement.
"Tokenisation has the potential to transform wholesale markets – reshaping how assets are issued, traded and settled," Simon Walls, executive director of markets at the FCA, said in a statement. "We want to support firms in adopting this technology to lower costs, reduce risk and unlock new services."
The central bank’s plan will extend its high-value CHAPS payment system, starting in September 2027 to overlap with Asian trading hours. The multi-year upgrade targets Sunday settlement no earlier than 2029 and a 22-hour weekday operation by 2031. The regulators are also creating a framework to permit stablecoins for settlement ahead of a full crypto framework in October 2027.
This comprehensive strategy, which follows the FCA’s recent policy allowing blockchain-based records for funds, aims to provide regulatory certainty for firms. The goal is to attract digital asset businesses and solidify the UK's position as a global financial hub ahead of a full strategy document release later in 2026.
The joint initiative calls for input from a wide range of market participants, including banks, asset managers, and financial market infrastructure providers. The feedback will inform a cross-authority roadmap for wholesale market digitalization to be published later this year. This effort is aligned with the UK's ongoing Digital Securities Sandbox, where 16 firms are currently testing the issuance, trading, and settlement of tokenized assets under regulatory supervision. The BOE’s consultation on extending its RTGS and CHAPS settlement hours will accept responses through August 10.
This article is for informational purposes only and does not constitute investment advice.
