UK regulators seek input on tokenized wholesale markets

UK regulators are consulting on tokenized wholesale markets, seeking industry feedback on digital securities regulation. Responses are due by July 3, 2026, with a roadmap expected later that year.

UK financial regulators, including the Financial Conduct Authority and the Bank of England, have launched a joint consultation to gather feedback on the regulation, infrastructure, and market practices for tokenized wholesale financial markets. The consultation, open until July 3, 2026, focuses on tokenized securities such as bonds, equities, and fund units. Key areas under review include prudential treatment, settlement mechanisms, collateral frameworks, and post-trade infrastructure. The initiative targets a broad range of market participants, including banks, investment firms, asset managers, trading venues, post-trade service providers, and fintech companies. Regulators emphasize the need for clear rules to support investment, testing, and scaling of tokenization solutions. They plan to collect substantial evidence before publishing a comprehensive roadmap for the digitalization of wholesale markets later in 2026. Proposals also suggest extending settlement system operating hours to further modernize the UK’s financial infrastructure.