Major Banks Join U.K. Tokenization Taskforce

The U.K. government is advancing a tokenization initiative that brings together more than 50 financial firms, including BlackRock, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley and UBS. The 54-member group is backed by the City of London Corporation and will work over the next year on live tokenization use cases across U.K. financial markets.

The effort matters because tokenization is becoming a competitive focus for major financial centers. According to CoinDesk, the first phase will initially focus on tokenized repo, a key area of wholesale finance where digital market infrastructure could be tested in real-world conditions.

The initiative is led by Chris Woolard, HM Treasury’s Wholesale Digital Markets Champion and a former chair of the Financial Conduct Authority. His report said the main opportunities include productivity and cost efficiencies that could benefit trading hubs such as London.

The report also pointed to a larger market opportunity around tokenized real-world assets. CoinDesk cited a Boston Consulting Group estimate that the tokenized RWA market could reach $88 trillion by 2035, compared with a current crypto and stablecoin market of about $3 trillion.

Other jurisdictions, including the U.S. and the European Union, are also examining how tokenization can be integrated into traditional finance. Woolard’s report warned that tokenized markets are a “network game,” meaning the U.K.’s position will depend on how quickly it can help shape international market standards and infrastructure.