Ripple has joined a new UK initiative aimed at bringing tokenized assets into mainstream financial markets, as the country pushes to modernize its financial infrastructure using blockchain technology.
The strategy, led by Wholesale Digital Markets Champion Chris Woolard, focuses on moving beyond pilot projects and putting tokenized financial products into real-world use. Ripple said that blockchain-based funds, bonds, and repurchase agreements (repos) can make financial transactions faster, cheaper, and more efficient.
According to the plan, wider adoption of tokenization could add up to £33 billion to the UK economy each year and generate around £14 billion in annual tax revenue by 2035. These projections depend on market adoption, regulatory progress, and the UK’s ability to secure a significant share of the growing global tokenized asset market.
The taskforce includes 54 organizations from banking, asset management, market infrastructure, and digital asset sectors. Nine working groups will focus on areas such as settlement, collateral, legal frameworks, and market access.
One of the group’s first major goals is testing tokenized repo transactions, where securities are used as collateral for short-term borrowing. The taskforce hopes to complete a live end-to-end tokenized repo transaction by spring 2027.
The strategy also supports the development of a digital government bond, known as a digital gilt. Officials are aiming for the first issuance by early 2027 and are working to clarify whether tokenized government bonds can be used as collateral within existing financial markets.
Meanwhile, UK regulators are already testing tokenized securities through the Digital Securities Sandbox, a program involving 16 firms and overseen by the Financial Conduct Authority (FCA) and the Bank of England. The initiative allows participants to issue and settle tokenized bonds, equities, and fund units in a regulated environment.
Regulators have indicated that the next step is moving from testing to real-world implementation. However, important issues such as custody rules, legal ownership, capital requirements, and settlement standards still need to be fully addressed.
Ripple said the UK is well-positioned to become a leader in tokenized wholesale finance due to its strong financial markets and regulatory framework. Still, the final direction of the project will be determined by HM Treasury, regulators, and the broader taskforce rather than any single company.
The UK’s new roadmap marks a significant step toward integrating blockchain technology into traditional financial markets, with the success of the initiative likely depending on how quickly firms can complete trials, develop active markets, and connect tokenized assets with existing banking and payment systems.
