Key facts
- Ripple is supporting the UK Treasury's Wholesale Digital Markets taskforce and tokenization strategy.
- The UK tokenized real-world assets market is projected to reach £33 billion in annual economic output by 2035.
- Ripple will contribute to building secondary markets, tokenizing collateral, and issuing the UK Digital Gilt instrument DIGIT.
- The UK government aims to transform wholesale finance using distributed ledger technology.
- A live trial for a repo use case is planned by spring 2027.
Ripple has announced its commitment to supporting the UK Treasury's Wholesale Digital Markets taskforce and its ambitious strategy to scale tokenization within the United Kingdom. The blockchain payments firm, known for its XRP Ledger (XRPL) tokenization services, will collaborate with Chris Woolard, the Wholesale Digital Markets Champion at HM Treasury, to advance the UK's tokenized financial markets.
Ripple highlighted that traditional financial instruments such as funds, bonds, and repos are already being tokenized on-chain, offering superior cost, speed, and efficiency compared to traditional finance systems. The UK government anticipates that the tokenized real-world assets market could generate an annual economic output of £33 billion by 2035, leveraging the country's capital market depth and regulatory credibility to become a global leader in this space. The initiative also aims to generate an estimated £14 billion in annual tax revenue by 2035.
As a member of the cross-industry taskforce, Ripple will play a role in developing secondary markets, tokenizing collateral, and facilitating the issuance of the UK Digital Gilt instrument, DIGIT, over the next twelve months. This initiative aligns with the broader goal of transforming wholesale finance through distributed ledger technology, ensuring interoperability and replacing outdated processes for sector-wide digitalization. Ripple has previously partnered with Aviva Investors to launch tokenized traditional fund products on the XRP Ledger. Furthermore, Ripple and the taskforce are set to establish a repo use case, with plans for a live trial by spring 2027. The Treasury also indicated a consideration for exploring additional asset classes, such as commodities, in the future.
On the XRP Ledger, tokenized real-world assets have seen significant growth, increasing from $150 million to $4 billion in just one year. Currently, over 500 products are live on XRPL, with notable contributions from JMWH and Ondo Short-Term Government Bond Fund, representing nearly $2.5 billion in value.