UK Advances in Wholesale Tokenization with FCA and Bank of England Feedback
- The Financial Conduct Authority (FCA) and Bank of England published Feedback Statement FS26/1 on September 14, summarizing responses from a May Call for Input on tokenization.
- 123 responses indicated that temporary regulatory regimes hinder investment, urging a shift towards full production.
- Key industry players like Hedera, BlackRock, Ripple, and Chainlink emphasized priorities including interoperability and auditability.
- The regulators plan to release a UK wholesale tokenization roadmap by late 2026, establishing timelines for various initiatives.
- A report cited that market participants hold an average of 7% excess collateral as a buffer, which tokenization could significantly reduce.
The feedback highlighted the importance of faster collateral mobility over continuous trading benefits, reflecting industry priorities in the evolving landscape of DeFi. The FCA’s crypto authorization gateway is set to open on September 30,2026.
With plans for further Digital Gilt Instrument issuances contingent on initial success in Q1 2027, the UK’s tokenization strategy is gaining momentum as it aims to reshape financial infrastructure.(Source)
