Banking group UK Finance urged the British government to encourage the development of securities tokenization, highlighting the technology’s potential to transform the country’s financial system.
UK Finance, together with consulting firm Oliver Wyman, released a special report calling on the British government to encourage securities tokenization, as the technology could bolster Britain’s position as a global financial hub.
According to the report’s authors, tokenization has clear benefits, including lower costs and risks, as well as greater access to the financial sector. Bob Wigley, Chairman of UK Finance, said the United Kingdom risked falling behind in the race to embrace digital technologies. He noted that the country had huge financial resources, a developed capital market, and a lot of technological developments, but had not yet issued digital bonds like other countries.
Singapore authorities are actively exploring options for tokenized assets under Project Guardian, while commercial banks in Sweden, France, and Liechtenstein are actively developing infrastructure for asset tokenization.
The report’s authors also noted that the United Kingdom already has a regulatory framework for digital assets, making it much easier to introduce securities tokenization at the national level. And while it will require some changes to the existing legal framework, members of UK Finance argue that the country can become a global leader in tokenization. To do so, the government must not only support innovation, but also focus on developing global standards for technology interoperability.
Various studies show that the tokenized assets market can reach from $5 trillion to $16 trillion by 2030.
