UK regulators to develop tokenization roadmap after industry feedback

The UK’s Financial Conduct Authority (FCA) published industry feedback on its plans for tokenized financial markets, setting the stage for a joint tokenization roadmap with the Bank of England later this year.

The regulator received 123 responses from industry groups, financial firms and legal academics, with most agreeing that post-trade processes, particularly the movement of collateral between parties, represent the main opportunity for tokenization.

The FCA and Bank of England will use the feedback to develop the roadmap, which is expected later this year and will set target dates for the UK’s work on wholesale tokenization.

The FCA also launched a separate consultation on tokenized gold following feedback from respondents, as it explores how distributed ledger technology could be used across a broader range of wholesale financial markets.

The UK push comes as European financial firms seek to expand the use of tokenized securities. Last week, a coalition including Nasdaq, Boerse Stuttgart and Securitize urged EU lawmakers to remove or substantially raise proposed limits on assets admitted to distributed ledger technology infrastructure.