This week the UK government published its strategy For wholesale financial markets and digital asset strategy.
HM Undersecretariat of Treasury identified a path to remove barriers and acknowledged that regulations needed to be updated. Purpose is to seek greater efficiency, lower costs, better liquidity/resiliency, better support to the real economy and competitiveness relative to other jurisdictions.
The first of two reports has been delivered to the Chancellor of the Exchequer and provides a framework to support its implementation. Wholesale Financial Markets Digital Strategy.
England has already started NUMBER Pilot (Digital Gilt Instrument) aims to make the UK the first G7 country to issue digital Government debt securities.
Digital Securities Sandbox (DSS) was created so that companies can now apply to explore the use of digital assets.
The report is based on pursuing three key missions: Market optimization (no more paper plus automation); Fundamental market transformation, including tokenization and stablecoins; and market leadership to position the UK as a globally decisive jurisdiction.
Appointed April 2026Chris Woolard CBE, a partner ARTICLE And was previously a competition champion FCAHM Undersecretariat of Treasury Wholesale Digital Markets ChampionIt is on a mission to accelerate the adoption of tokenization in the UK financial markets.
As stated in Wholesale Digital Markets Champion – Terms of ReferenceThe goals are:
- Provide market leadership in developing a tokenized wholesale financial markets ecosystem and support industry advancement.
- Provide leadership to co-ordinate the sector’s wider implementation of digital as set out in the Wholesale Financial Markets Digital Strategy
A report on blockchain (DLT) adoption and interoperability is expected to be published by July 2027.
A statement published by the City of London includes the following claims:Tokenization could add hundreds of billions of pounds of economic value to the UK economy by 2035.”
Additionally, it is predicted that up to £33 billion could be added to the UK’s annual economic output by 2035, with annual tax revenues reaching over £14 billion.
“As one of the world’s largest and most international financial services markets, the UK is uniquely positioned to become the global leader in wholesale market tokenisation. There is so much potential, technologically and economically, if the right actions are taken and decisions are made to embrace and support tokenisation,” says Woolard.
Head of Policy City of London Corporation, Chris Haywardof the United Kingdom It’s a once-in-a-generation opportunity to lead this digital transformation, which he describes as the “digital big bang.”
Dozens of TradFi and digital asset firms have signed up to support this transformation
Richard BakerCEO and founder tokenovateHe says the initial report is a strong step forward in the UK’s ambition to move into digital assets by focusing on market activity, not just isolated pilots.
“Starting with a peer-to-peer repo transaction is the right approach. It will test whether tokenized assets can be bought and sold, used as collateral, and traded efficiently across digital and existing infrastructure. DIGIT should be evaluated in the same way. Its success will depend on what happens after issuance, including the ability to support secondary trading, repo and collateral use, and attract institutional liquidity,” Baker said.
He warned of the possibility of creating “digital silos.”
“The UK has strong legal foundations, but the report is right to call for busting myths around English law and creating clear frameworks around certainty of settlement, collateral treatment and custody. The priority now is to translate this legal strength into practical market adoption, giving firms certainty as well as a clear route from testing to production.”
Other obstacles and challenges will arise along the way.
The upcoming second report is said to focus on implementation details, with industry feedback expected by September 2026.
The UK is already working with the US to coordinate regulatory activities; This will provide support to both countries if the United States can enact the CLARITY Act. Stablecoin legislation in the US is already in effect. Other jurisdictions have updated regulations to support digital asset innovation, but the importance is greater for the UK and the US, the world’s two leading financial centres. Following the wholesale markets is where the greatest benefit will be gained and will also help direct the retail industry. Woolard has built a solid reputation since his days at the FCA and appears to have shown the urgency and effort required to promote the benefits of digital assets.
