City Minister Lucy Rigby discussed measures to advance tokenization IFGS (UK Fintech Week) This week. As previously reportedThe measures include a single framework for traditional and tokenized payments, including stablecoins and tokenized deposits. The target is part of a policy to “make the UK a world leader in Fintech”.
Richard BakerCEO and founder tokenovateHe shared his opinion on the announcement, expressing concerns about whether regulatory updates will lead to changes in market infrastructure. As Baker has stated in the past, he worries that tokenization will be added to existing operations, thus muting any gains.
“The focus on integrating tokenized instruments into core financial services regulation marks a welcome step in strengthening the UK’s competitive edge and promoting digital asset tokenisation, strengthening its position as a global leader in fintech innovation,” Baker said. “The direction set today supports a more coordinated approach to modernizing market infrastructure, and the opportunity now lies in ensuring that tokenization delivers meaningful gains through real changes to post-trade processes, rather than remaining layered on legacy fragmentation.”
He explained that interoperability, synchronized data, and lifecycle consistency are required to accommodate the transition.
“Frameworks such as Common Domain Model (CDM) and Digital Regulatory Reporting (DRR) will play a key role in ensuring consistent workflow processing of tokenized assets across infrastructures and reducing friction between fragmented systems,” Baker said.
He added that he would like to see more funding for the Center for Finance, Innovation and Technology (CFIT) because it would increase industry coordination and standardisation. He thinks this will help turn collaboration into real progress and alleviate inherent challenges.
