UK banks are clamouring for a national platform for tokenised securities
Tokenisation is an odd technology, but it will open the door to new asset classes and markets worth over $100 Trillion.
Key takeaways
- Currently the UK is behind other countries regarding tokenization, but together with Oliver Wyman it published a report outlining a path for the UK to become a leader.
- UK Finance asked His Majesty’s Treasury (HMT) to roll out the sandbox urgently as the number one priority.
- UK Finance has called for flexibility regarding the Central Securities Depository Regulation (CSDR).
Cite or link to this article
Griffin, M. (2023) 'UK banks are clamouring for a national platform for tokenised securities', 311 Institute, 23 July. Available at: https://www.311institute.com/uk-banks-clamour-for-a-national-platform-for-tokenised-securities/ (Accessed: 1 October 2026).
This week UK Finance, the banking and financial services industry body, called for government action to support the UK in adopting tokenized securities. Currently the UK is behind other countries regarding tokenization, but together with Oliver Wyman it published a report outlining a path for the UK to become a leader.
“Securities tokenisation is likely to transform financial markets, through delivering lower costs, lower risks, and wider market access,” said Bob Wigley, Chair of UK Finance. “But without continued bold action the UK risks falling behind other jurisdictions.”
The future of Finance, by keynote Matthew Griffin
The industry body called for the government to issue bonds using blockchain, following the likes of the Hong Kong Monetary Authority, and the European Investment Bank (EIB), which has issued four digital bonds.
Additionally, there’s a request for the Treasury to explore whether there’s “industry appetite for a shared, national infrastructure for tokenized securities.”
While the EU’s DLT Pilot Regime is now live, the UK’s FMI Sandbox is not yet out of the starting gates. UK Finance asked His Majesty’s Treasury (HMT) to roll out the sandbox urgently as the number one priority. It’s keen for a roadmap for what happens when the sandbox ends, as there’s a risk that the efforts could be wasted. It also wants to see connectivity between other jurisdictions and the UK Sandbox.
UK Finance has called for flexibility regarding the Central Securities Depository Regulation (CSDR). The EU’s DLT Pilot Regime relaxes legislation allowing a single entity to operate both a trading platform and a central securities depository (CSD). That’s because a distributed ledger often covers most of a CSD’s functions in recording asset ownership and settlement.
However, despite the EU rolling out its Pilot Regime, three months after the legislation went live, there’s been little activity. One of the challenges is the limits on transaction volumes for digital securities, which resulted in the bigger players choosing to comply with existing legislation instead.
“The opportunities that tokenisation presents are substantial and given the UK is a leading global financial centre, we need to be at the forefront of development,” added Wigley.
FAQ
Why does this matter?
Tokenisation is an odd technology, but it will open the door to new asset classes and markets worth over $100 Trillion.
About the author
Matthew Griffin Founder, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
Read full bio
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.
What future do you need to see?
Choose one to get started on connected society and the future of your organisation.
Sources and further reading
- UK Finance ukfinance.org.uk
- Unlocking%20the%20power%20of%20securities%20tokenisation.pdf ukfinance.org.uk
- EIB ledgerinsights.com
Source: first published by the 311 Institute on 23 July 2023. Cite as: Griffin, M. (2023). UK banks are clamouring for a national platform for tokenised securities. 311 Institute. https://www.311institute.com/uk-banks-clamour-for-a-national-platform-for-tokenised-securities/
You are welcome to quote this article with credit and a link to the original.