Tokenisation of UK Wholesale Capital Markets: Key Takeaways from the FCA‘s and Bank of England’s Call for Input - Mayer Brown

The Bank of England and the Financial Conduct Authority have jointly issued a call for input on the tokenisation of UK wholesale capital markets. Tokenisation refers to converting conventional securities—such as bonds and equities—into digital instruments recorded on a shared, programmable ledger. The regulators are seeking industry views on how this technology could affect market infrastructure, trading, settlement, and existing legal frameworks.

For market participants, this consultation marks a significant step in the UK’s efforts to modernise its capital markets. Potential benefits include faster settlement, greater transparency, and enhanced operational efficiency. However, the move also raises important questions about legal finality, cross-system interoperability, and systemic resilience. The regulators will need to decide whether existing rules are adequate or require new provisions.

As outlined in a recent analysis by Mayer Brown, a central theme is balancing innovation with investor protection. Observers should watch how the feedback informs future policy, particularly whether digital securities gain explicit legal recognition. Outcomes may reshape the roles of depositaries, exchanges, and custodians, influencing the broader architecture of wholesale market activity in the UK.