Bank of England, FCA launch consultation on tokenized UK wholesale markets

The Bank of England and the Financial Conduct Authority (FCA) have initiated a joint consultation seeking industry input on the regulatory framework, infrastructure, and market practices for tokenized wholesale financial markets in the UK. This initiative aligns with the government's Wholesale Financial Markets Digital Strategy, which views tokenization as a key opportunity to enhance post-trade processes and collateral management. The regulators are inviting feedback from banks, investment firms, and fintech companies regarding tokenized assets like bonds and equities until July 3.

This consultation builds upon previous efforts to modernize the financial sector, including the Digital Securities Sandbox and recent policy statements regarding fund tokenization. The authorities intend to host workshops following the submission deadline, leading to a feedback statement and a comprehensive roadmap for digital wholesale market development expected later in 2026. Furthermore, the Bank of England is exploring extended settlement hours and synchronization services to support the integration of distributed ledger technology into core financial operations.

(Source：The Block)