FCA Bank of England Launch Tokenisation Vision

UK Regulators Seek Input on Tokenisation in Financial Markets

• The UK’s Financial Conduct Authority (FCA) and Bank of England (BoE) have issued a joint “Call for Input” to develop a regulatory framework for tokenised assets using distributed ledger technology.
• The initiative focuses on how tokenised financial instruments fit within existing regulations, specifically regarding exposures, collateral, and settlement in a DLT-native environment.
• Responses are open until July 3, 2026, with feedback expected in the summer of that year.
• The UK’s Digital Securities Sandbox supports 16 firms in live issuance and settlement of tokenised securities.
• The BoE plans to extend its Real-Time Gross Settlement system to near-24/7 availability, impacting cross-border payments.

The FCA and BoE’s initiative aims to clarify regulatory treatment for tokenised assets as they explore their integration into the UK financial markets.