The UK Financial Conduct Authority (FCA) has released feedback from its recent consultation regarding the tokenization of wholesale financial markets. The regulator gathered 123 responses from various industry groups, financial institutions, and legal experts to help shape future policy.
Participants in the consultation highlighted post-trade processes, specifically the transfer of collateral between parties, as the primary area for tokenization adoption. Based on these findings, the FCA and the Bank of England plan to publish a joint roadmap later this year.
This upcoming roadmap will establish specific target dates for the implementation of wholesale tokenization in the UK. Additionally, the FCA has initiated a new consultation focused on tokenized gold to evaluate the broader application of distributed ledger technology.
The UK's initiative aligns with a growing trend among European financial firms to increase the use of tokenized securities. Recently, a coalition including Nasdaq, Boerse Stuttgart, and Securitize called on EU regulators to adjust limits on assets within distributed ledger infrastructure.
