UK Finance pushes for execution on tokenization as UK progress lags rivals

UK Finance and Oliver Wyman have released a report highlighting that while the United Kingdom has established the necessary legal and regulatory framework for tokenized wholesale markets, it currently lacks sufficient market activity. The report warns that the UK risks losing its competitive edge in financial services, an industry contributing £290 billion annually to the economy, if it fails to implement tokenization infrastructure faster than rivals in New York, Frankfurt, and Singapore. Industry participants describe the UK's current position as mid-table, emphasizing that the nation is not yet a leader in the global transition to digital assets. To address this, the report urges both the government and private sector firms to accelerate execution rather than focusing solely on policy development. A key milestone identified is the appointment of Chris Woolard as the Wholesale Digital Markets Champion, who is tasked with coordinating a 12-month program across nine action groups. This initiative aims to launch a live tokenized repo trial by Spring 2027 to demonstrate practical utility. The report underscores that failing to act could result in UK firms being forced to operate on financial rails designed and governed by foreign jurisdictions.