UK regulators advance tokenization and RTGS overhaul

TLDR

UK regulators are pushing tokenization into the mainstream and redesigning core payment rails to support it.

1. The Bank of England and FCA launched a joint consultation and shared vision for tokenized wholesale markets, including tokenized bonds, equities, and fund units.
2. The Bank of England plans to extend RTGS and CHAPS toward near 24/7 operation, plus a 2028 synchronisation service tailored to tokenized collateral and new settlement models.
3. Over the next 25 years, rules for tokenized securities, stablecoins, and tokenized deposits will shape how crypto, RWAs, and DeFi connect into the UKs regulated financial system.

Deep Dive

1. What Regulators Are Actually Doing

The Financial Conduct Authority (FCA) and Bank of England (BoE) have opened a joint Call for Input on tokenized UK wholesale markets, giving firms a framework to issue and settle tokenized securities such as bonds, equities, and fund units within existing rules. The consultation focuses on prudential treatment, tokenized collateral, settlement instruments, and market infrastructure, and runs to 3 July 2026 in current documents.

This builds on the Digital Securities Sandbox, where 16 firms are already testing live issuance and settlement of tokenized assets under supervision. Regulators describe a move from pilots to production in wholesale markets, signalling that tokenization is no longer treated as a side experiment but as core market infrastructure.

2. RTGS Overhaul And Why It Matters

In parallel, the BoE has proposed extending the operating hours of its Real-Time Gross Settlement (RTGS) system and the CHAPS high?value payments system toward near 24/7 availability, with staged milestones such as later weekday cut?offs, weekend settlement, and a 22?hour daily window by 2031. Reports highlight that these changes are explicitly framed as preparation for tokenized finance and cross?border real?time settlement.

The BoE also plans a live synchronisation service by 2028 to coordinate on?chain and off?chain leg settlement and to allow tokenized versions of eligible assets to be used as collateral at central counterparties and in central bank operations. For crypto and RWA builders, this is the plumbing that could let tokenized government bonds, funds, or deposits interface cleanly with central bank money.

3. How This Flows Into Crypto And What To Watch

First, the same UK ecosystem that is defining tokenization rules is also finalizing a stablecoin regime, with plans for systemic stablecoin oversight at the BoE and broader crypto regulation primarily at the FCA. That creates a path for GBP stablecoins and tokenized deposits to sit inside a coherent payments framework, not just as speculative instruments.

Second, fund tokenization rules now allow blockchain records to be the primary ledger for UK funds, removing the requirement for parallel off?chain books. That is an on?ramp for tokenized fund shares to interact with exchanges, brokers, or even DeFi venues that can satisfy UK custody and investor?protection rules.

Key things to watch over the next few years are: the final BoE and FCA rulebooks after consultation, actual products coming out of the Digital Securities Sandbox, which assets get admitted as tokenized collateral at central bank level, and how strict or flexible the final stablecoin norms are.

Conclusion

The UK is not just talking about tokenization; it is rewiring core settlement systems and writing prudential rules so tokenized securities, stablecoins, and tokenized deposits can plug into regulated markets. For crypto users and builders, the opportunity is in RWA and payment designs that can live inside this framework, while the main risk is that final rules become so conservative that only large incumbents can participate.