FCA and Bank of England Target Permanent Tokenised Markets on Back of 123 Industry Responses - Finance Magnates

UK regulators are moving tokenised financial markets from pilot projects toward permanent infrastructure. According to Finance Magnates, the Financial Conduct Authority and the Bank of England are pursuing that goal after receiving 123 industry responses to their joint consultation on digital asset regulation — a signal of broad market engagement rather than a niche experiment.

Tokenisation refers to representing traditional assets, such as bonds or funds, as digital tokens that can be issued and settled on distributed ledger technology. Supporters argue this can speed up settlement and reduce operational friction, though it also raises questions about custody, legal finality, and how existing rules apply to novel market structures.

For market participants, the key takeaway is that the UK's approach is shifting from sandbox testing toward durable rulemaking. What to watch next: how the regulators translate industry feedback into concrete requirements, whether live tokenised issuance and trading gain clearer legal footing, and how the UK's framework compares with regimes emerging in the EU and other financial centres.