Ripple joins UK push for £33 billion tokenization overhaul

The initiative, spearheaded by Wholesale Digital Markets Champion Chris Woolard, estimates that widespread adoption of tokenized finance could bolster annual economic output by £33 billion and tax revenue by £14 billion by 2035. To achieve these targets, the taskforce has organized nine action groups tasked with establishing industry standards for digital gilts, collateral markets, and end-to-end transaction processes. These groups include 54 firms spanning banking, asset management, and digital infrastructure.

Central to the plan is the transition of on-chain funds, bonds, and repo transactions from experimental pilots to production-ready systems. The government is also pushing for the issuance of its first digital gilt by early 2027. While regulators at the Financial Conduct Authority and the Bank of England are already facilitating testing through the Digital Securities Sandbox, the new taskforce faces the challenge of reconciling blockchain efficiency with existing requirements for custody, legal ownership, and settlement risk. Industry feedback on the proposed priorities and technical standards remains open until September 4.