BoE and FCA Unveil Tokenization Roadmap with Focus on Post-Trade Processes

The Bank of England and Financial Conduct Authority have outlined their joint vision for tokenization in wholesale markets, citing post-trade processes as the most compelling use case. The regulators plan to build a roadmap by late 2026, covering issuance, settlement, and collateral treatment.

A survey of 123 industry stakeholders found that features like atomic settlement and round-the-clock trading were mainly mentioned in the context of improving collateral operations. These capabilities are valuable because they enhance collateral mobility, not because traders want to execute trades at odd hours.

Research from UK Finance and Oliver Wyman suggests that tokenization could reduce excess collateral buffers by up to 30%. This would free up capital currently sitting idle as a cushion against settlement delays and operational friction.