The Financial Conduct Authority and the Bank of England opened a joint consultation on Monday seeking industry feedback on regulation, infrastructure, and market practices tied to tokenized wholesale financial markets in the UK.
According to a statement, the consultation forms part of a broader UK digital markets strategy focused on tokenized securities and post-trade infrastructure, with regulators outlining proposed approaches covering prudential treatment, tokenized collateral, and settlement instruments.
“The government's Wholesale Financial Markets Digital Strategy (WFMDS) identified tokenization as a significant opportunity – particularly in post-trade processes and collateral,” the regulators said in the statement. “This Call for Input builds directly on that strategy and supports the role of the government's recently appointed Wholesale Digital Markets Champion.”
The consultation targets banks, investment firms, asset managers, financial market infrastructure providers, including central securities depositories and central counterparties, trading venues, post-trade service providers, and fintech firms developing tokenization solutions.
The regulators said the current consultation focuses on tokenized securities, including bonds, equities, and fund units, though authorities may expand the scope in the future.
