UK Regulators Unveil Tokenization Roadmap Following Industry Feedback

The UK Financial Conduct Authority (FCA) and Bank of England have received feedback from 123 industry responses to their joint call for input on tokenized markets. The FCA will publish a tokenization roadmap later this year with specific workstreams and target dates.

Respondents identified post-trade activity, particularly collateral management, as the main opportunity for tokenisation. Potential benefits include 24-hour trading, atomic settlement, greater collateral mobility, and fewer reconciliations.

The FCA said tokenised collateral could improve collateral velocity and support real-time margin calculations. Tokenised money market funds could also potentially be used as collateral without being liquidated.