UK Advances Wholesale Market Strategy with DLT and Tokenization Focus

The U.K. government has unveiled plans to integrate distributed ledger technology (DLT) into wholesale financial markets, targeting specific use cases and tokenization solutions. Treasury officials emphasized cross-market collaboration to implement live DLT applications, reinforcing the nation's ambition to become a crypto hub.

Regulatory frameworks for crypto assets are already in development, including April's draft legislation for stablecoin issuers and exchanges. The policy paper highlights openness to innovations like tokenized deposits and stablecoins for digital wholesale payments.

Tokenization of real-world assets has surged 380% globally since 2022, reaching $24 billion in market value. U.K. regulators will test stablecoins alongside traditional payment systems within a newly proposed digital securities sandbox.