The Bank of England and the Financial Conduct Authority (FCA) have released a joint roadmap outlining the future of digital securities and stablecoins in the UK. The plan focuses on tokenization of assets, allowing traditional securities to be represented on distributed ledger technology (DLT). It also proposes the use of stablecoins for institutional settlement, potentially enabling faster and more efficient transactions. A key aspect of the roadmap is a phased approach toward 24/7 operation of financial markets, moving away from the current T+2 settlement cycle. The regulators emphasize that this transition will be gradual, with careful management of risks such as financial stability, operational resilience, and consumer protection. The announcement follows the UK’s broader ambition to become a global hub for crypto and digital finance, building on previous consultations and the Financial Services and Markets Act 2023. Industry stakeholders are expected to provide feedback, with implementation timelines to be determined. The roadmap aims to balance innovation with regulatory safeguards, positioning the UK as a leader in digital asset adoption while maintaining market integrity.

Key facts

• UK regulators jointly release roadmap for tokenization and stablecoin use in settlement.
• Plan targets 24/7 market operations, moving away from current T+2 settlement.
• Focus on asset tokenization using distributed ledger technology (DLT).
• Stablecoins proposed for institutional settlement to improve efficiency.
• Gradual implementation with risk management and industry consultation.