Rewiring Finance: Tokenisation as a Catalyst for UK Growth
RWA Signal Insight
InfrastructureBarclays and PwC have released a joint report analyzing the potential for tokenization to transform the UK economy by creating a more connected financial system. The study estimates that widespread adoption of tokenized assets could unlock up to £33 billion in additional annual GDP by 2035. Two-thirds of these economic benefits are expected to flow into sectors beyond traditional financial services, impacting businesses and households directly. The report identifies wholesale markets, including settlement and collateral mobilization, as the immediate priority for UK adoption. It emphasizes that the UK's competitive advantage lies in its ability to act as a trusted bridge for interoperability between global tokenized platforms. To capture this growth, the authors urge policymakers to focus on strategic areas like corporate bonds, private markets, and infrastructure finance. Failure to establish clear regulatory pathways risks losing liquidity and market activity to other global financial centers.
Key points
- Tokenization could add £33 billion in annual GDP to the UK economy by 2035.
- PwC utilized a Computable General Equilibrium model to simulate macroeconomic impacts across six key sectors.
- Wholesale markets are identified as the primary foundation for broader UK tokenization adoption.
- The UK is positioned to lead by setting standards for cross-border interoperability and governance.
Background
Barclays is a major British multinational universal bank, while PwC is a global professional services network providing audit, tax, and advisory services. The report focuses on the concept of tokenization, which involves representing real-world assets or financial instruments as digital tokens on shared ledgers to reduce intermediary reliance and manual reconciliation.