Ripple backs UK tokenization plan targeting £33B annual boost

Ripple has backed a new UK strategy designed to move wholesale financial markets toward tokenized infrastructure. 

The plan comes from the Wholesale Digital Markets Champion, Chris Woolard, who was appointed by HM Treasury in April. Ripple said on-chain funds, bonds and repo transactions are no longer limited to trials and can offer faster and cheaper financial processes. The company is among the industry participants supporting the government-linked taskforce.

The strategy places the UK’s large capital markets at the center of the plan. It estimates that wider tokenization could add “up to £33 billion” to annual economic output and £14 billion in yearly tax revenue by 2035. Those figures depend on adoption, regulation and the UK winning a meaningful share of a global tokenized asset market that the report values at a possible $88 trillion by 2035.

Taskforce targets tokenized repo and digital gilts

The taskforce includes 54 firms from banking, asset management, market infrastructure and digital assets. It will create nine action groups covering areas such as collateral, settlement, legal standards and market access. The first practical focus will be tokenized repo, where securities serve as collateral for short-term cash borrowing. The group aims to test and, where possible, run a live end-to-end repo transaction by spring 2027.

The plan also calls for progress on DIGIT, the UK government’s proposed digital gilt instrument. Woolard wants the government to issue the first digital gilt by early 2027 and support later issuance. 

The report also asks authorities to clarify whether tokenized government bonds can qualify as collateral. These steps would help firms use digital securities inside existing wholesale markets rather than keeping them in separate pilot systems.

Regulators prepare markets for live tokenized assets

The UK has already opened regulated testing for tokenized securities. As previously reported, the Financial Conduct Authority and Bank of England are working with 16 firms in the Digital Securities Sandbox. 

The program covers live issuance and settlement of tokenized bonds, equities and fund units. Regulators have also requested market feedback on settlement assets, tokenized collateral and links between blockchain networks and existing infrastructure.

The Bank of England and FCA have said the next stage should move activity from pilots toward production. However, firms still need clear rules on custody, capital treatment, legal ownership and settlement money. 

Moreover, tokenization can reduce manual work and settlement delays, but it does not remove credit, operational or counterparty risk. The taskforce will need to show that new systems meet the standards already required in regulated wholesale markets.

Ripple links UK strategy to broader market growth

Ripple’s support fits its wider work in payments, stablecoins, custody and tokenized assets. The company said Britain has the market depth and regulatory standing to lead tokenized wholesale finance. That statement reflects Ripple’s commercial view. The report does not assign Ripple control over the program, and HM Treasury, regulators and the wider taskforce will shape the final rules and technical standards.

As crypto.news previously reported, tokenized real-world assets have grown as banks and asset managers move funds, government debt and repo transactions onto blockchain-based systems. The UK plan now sets a 12-month delivery program around live use cases rather than general policy goals. 

Its progress will depend on whether firms complete the repo trial, expand secondary markets and connect digital assets with central bank and commercial bank money. The group will publish updates during the year and has invited industry feedback through September 4 on priorities and timetable.