FCA and Bank of England Target Permanent Tokenised Markets on Back of 123 Industry Responses - Finance Magnates

The UK's Financial Conduct Authority and the Bank of England are moving toward establishing permanent tokenised markets, following 123 industry responses to their joint consultation. The regulators are now signaling that tokenisation — representing traditional assets such as bonds or deposits on distributed ledgers — is being treated as a lasting part of market infrastructure rather than a limited experiment.

For market participants, the significance lies in the direction of travel. A permanent framework could eventually affect how securities are issued, settled and traded, potentially compressing settlement times and broadening access to certain instruments. The strong response count also suggests broad industry engagement, which may shape how detailed rules are calibrated.

What to watch: the substance of the regulators' next proposals, including which asset classes are prioritised and how existing rules such as custody and settlement finality are adapted. Also worth monitoring is whether the UK's approach attracts issuers relative to other jurisdictions developing similar regimes. The timeline and scope of any final rules remain the key variables for assessing real-world impact.