UK Finance, the trade association for the UK banking and financial services sector, has published a report calling on the British government support the adoption of tokenised securities in the country. Described by the association as a “deep dive into the world of digital transformation from a wholesale market perspective”, the report gives suggestions on how the UK could take up tokenised securities to maintain its competitive edge on the international stage.
Through gathering insights from government representatives, industry members, and legal experts, the report finds that the UK has “built positive momentum around tokenisation from a legal and regulatory perspective especially, but issuance activity has been minimal”.
Even though the UK is behind in tokenised securities issuance, UK Finance believes that the country is in a good position to catch up. The report suggests three key actions that stakeholders could take:
• Enable innovation and experimentation, underpinned by legal and regulatory certainty.
• Foster a UK digital market by promoting interoperability and safe innovation at-scale.
• Foster discussions around supranational standards for securities tokenisation by collaborating with international jurisdictions.