Key facts
- The FCA and Bank of England will develop a joint tokenization roadmap for UK financial markets.
- The FCA received 123 responses to its wholesale tokenization consultation.
- Most respondents identified post-trade processes as the main opportunity for tokenization.
- The FCA launched a separate consultation on tokenized gold.
The UK's Financial Conduct Authority (FCA) has published industry feedback on its plans for tokenized financial markets, signaling a forthcoming joint tokenization roadmap with the Bank of England. The regulator received 123 responses from various industry stakeholders, with a consensus emerging that post-trade processes, particularly collateral movement, present the most significant opportunity for tokenization adoption. This feedback will inform the development of the roadmap, expected later this year, which will outline target dates for the UK's wholesale tokenization initiatives. In addition to the broader wholesale market focus, the FCA has also initiated a separate consultation on tokenized gold, exploring further applications of distributed ledger technology in financial markets. This move by the UK regulators aligns with broader European efforts to expand the use of tokenized securities, as evidenced by a recent call from a coalition of firms, including Nasdaq and Securitize, to EU lawmakers to adjust proposed limits on assets within distributed ledger technology infrastructure.