- HM Treasury published the first tokenized markets strategy report.
- A 54-firm industry task force will develop live tokenization use cases over the next 12 months.
- Tokenized repo markets are planned as the first pilot, with a live test targeted for spring 2027.
The UK government is moving to bring traditional financial markets onto blockchain infrastructure, betting that tokenization could reshape how trillions of dollars in assets are issued, traded and settled over the next decade.
HM Treasury and Chris Woolard Lead UK Plan to Tokenize Institutional Financial Markets
On July 13, 2026, HM Treasury’s newly appointed Wholesale Digital Markets Champion, Chris Woolard CBE, published the first official report outlining how the UK intends to tokenize its wholesale financial markets at scale.
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Woolard, a former Financial Conduct Authority (FCA) executive director and interim CEO who now chairs EY’s Global Regulatory Network, was appointed to the role on April 21, 2026, with a mandate to help position the UK as a leading centre for tokenised financial markets.
The initiative is backed by a 54-firm industry taskforce, supported by the City of London Corporation, TheCityUK, UK Finance, the Investment Association and Innovate Finance. The group will operate through nine dedicated “Action Groups” tasked with delivering live use cases over the next 12 months.
Governments Join Asset Managers in Race to Build Tokenized Finance Infrastructure
For institutional investors and digital asset markets, the announcement arrives amid growing momentum around tokenised financial products.
BlackRock’s BUIDL fund, Franklin Templeton’s BENJI, and Ondo Finance have already shown that tokenized treasuries and money-market products can attract billions in institutional capital.
The UK’s move signals that governments, not only asset managers, are now seeking to shape the infrastructure behind tokenised finance. The strategy builds on DIGIT, the UK’s existing Digital Gilt instrument, as an early proof point.
Woolard described tokenisation as a global competitive race, arguing that the UK must move quickly if it wants to help shape international standards for the future of digital financial markets.
Tokenized Repo, Bonds and Fixed Income Become UK’s First Blockchain Finance Use Cases
The taskforce’s first practical target is tokenised repo — a key component of short-term institutional lending — with a live pilot planned for spring 2027.
Fixed income is the initial focus because of the market’s relative maturity, although the report leaves room for expansion into other asset classes, including commodities.
The economic opportunity is significant. The global tokenised real-world assets market is expected to reach $88 trillion by 2035. The UK government estimates that adopting tokenisation could add up to £33 billion ($44 billion) to annual economic output and generate £14 billion ($19 billion) in additional yearly tax revenues by 2035.
Industry feedback on the report is open until September 4, 2026, with further updates expected on the taskforce’s progress throughout the year.
The announcement places the UK alongside Singapore’s Project Guardian and the EU’s MiCA framework in a growing global effort to define the regulatory and infrastructure standards for tokenised markets — a development that could influence how institutional capital enters digital asset markets over the next decade.
On the Flipside
- Tokenized markets remain dependent on regulatory clarity, market adoption and coordination between traditional financial institutions.
Why This Matters
The UK’s tokenized markets strategy signals that governments are becoming active participants in developing RWA infrastructure, not just regulating crypto assets. The outcome could influence how institutional capital enters blockchain-based financial markets over the next decade.
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