CryptoUK Response to FCA and Bank of England Call for Input: The future of tokenisation – a joint vision from the authorities for UK wholesale financial markets
CryptoUK has submitted its response to the FCA and Bank of England’s joint Call for Input on the future of tokenisation in UK wholesale financial markets, informed by the views and expertise of our members.
The Call for Input, published on 18 May 2026, sits alongside the Government’s Wholesale Financial Markets Digital Strategy. It recognises the potential for tokenisation to reduce reconciliation costs, improve settlement and collateral movement, strengthen ownership records and support new issuance and post-trade models. For the industry, the practical issue is whether those benefits can be translated into authorisation routes, settlement arrangements, custody expectations and interoperability standards that firms can plan against.
CryptoUK’s response makes the case for a framework based on function, risk and evidence. Tokenised arrangements should not be required to replicate legacy processes where equivalent or better regulatory outcomes can be demonstrated through different methods. The response applies that principle across ten areas: authorised fund tokenisation, the Digital Securities Sandbox, settlement modernisation, tokenised money, tokenised collateral, DIGIT and tokenised gilts, SIC custody, primary issuance and tokenised equities, interoperability, and accountability, operational resilience and financial stability.
The international dimension is important because firms deciding where to commit capital, build counterparty relationships and allocate technical resource will compare the UK with other regimes on the conditions that make deployment possible: the authorisation route, the treatment of settlement assets, custody expectations, collateral eligibility and the path from sandbox evidence to permanent permissions. The UK does not need lower standards to compete. It needs standards that are clear enough for firms to plan against and usable enough for responsible activity to remain within supervised markets.
CryptoUK’s response therefore encourages the FCA, Bank of England, PRA and HM Treasury to publish an integrated dependency map covering deliverables, owners, evidence requirements, feedback loops and timelines. The priority is to convert pilot activity, sandbox evidence and early engagement into guidance, authorisation standards, rule changes and routes to live activity.
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