UK Regulators Seek Industry Feedback on Tokenized Wholesale Markets

The Bank of England and the Financial Conduct Authority (FCA) have launched a joint consultation to gather feedback on how tokenized wholesale financial markets should be regulated and developed in the United Kingdom. The move is part of the country’s wider digital finance strategy aimed at improving financial infrastructure through blockchain-based systems.

UK Consultation Focuses on Tokenized Securities

The consultation will focus on tokenized securities such as bonds, equities and fund units. Regulators are seeking views on important areas including prudential treatment, tokenized collateral and settlement systems used in wholesale financial markets.

Officials said tokenization presents a major opportunity, especially in post-trade processing and collateral management. The initiative also supports the UK government’s Wholesale Financial Markets Digital Strategy and the work of the newly appointed Wholesale Digital Markets Champion.

Digital Securities Sandbox Expands Testing

The consultation runs alongside the UK’s Digital Securities Sandbox, where 16 firms are already testing the issuance, trading and settlement of tokenized assets in a live regulated environment.

Banks, investment firms, asset managers, trading venues and fintech companies have been invited to participate. Responses will remain open until July 3, after which regulators plan industry workshops, a feedback report in summer 2026 and a long-term roadmap for digital wholesale markets later this year.