The UK Financial Conduct Authority will publish a tokenisation roadmap later this year after receiving 123 responses to a joint call for input with the Bank of England.
London’s trading industry is coming home!
The feedback showed broad support for the regulators’ approach, but respondents called for faster progress, clearer timelines and a move from pilots to permanent market infrastructure.
FCA Sets Priorities for Tokenised Markets
The FCA said the roadmap will set out specific workstreams and target dates. Key areas include digital securities issuance and settlement, tokenised assets and collateral, access to central bank money settlement, market functioning, custody of relevant specified investment cryptoassets, and the Treasury’s Digital Gilt Instrument pilot.
Respondents identified post-trade activity, particularly collateral management, as the main opportunity for tokenisation. Potential benefits include 24-hour trading, atomic settlement, greater collateral mobility and fewer reconciliations.
The FCA said tokenised collateral could improve collateral velocity and support real-time margin calculations. Tokenised money market funds could also potentially be used as collateral without being liquidated.
Firms also urged regulators to move beyond sandboxes. A recurring request was for a long-term model for digital securities settlement after the Digital Securities Sandbox.
Tokenised Assets Face Equivalent Prudential Treatment
The FCA said it is committed to a clear path from the DSS to permanent authorisation and will consider with the Treasury whether to extend or modify the sandbox or amend the wider Central Securities Depositories Regulation framework.
HSBC has already received permission within the DSS for notary, top-tier account maintenance and settlement functions.
On regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, the FCA said it remains committed to a technology-neutral approach based on the principle of “same risk, same regulatory outcome.” Regulated activities must have an identifiable responsible firm, including where third-party technology is used.
UK Considers New Path For Tokenized Gold
The UK FCA is preparing to outline possible reforms for tokenized gold products on Monday.
The regulator is considering exemptions from rules governing collective investment schemes and alternative investment funds.
The proposal could… pic.twitter.com/kncq8VVzv9
— BSCN (@BSCNews) September 14, 2026
The regulator said it would not support arrangements where customers have no recourse if assets are lost or stolen. It also highlighted risks involving bridges, key management, oracles, cross-chain messaging and wallet security.
Prudential treatment remains another key issue. The FCA said tokenised traditional assets should generally receive equivalent treatment to non-tokenised assets where “legal rights are identical and underlying risks are comparable.”
RSIC Custody Rules Consultation Set for 2027
Respondents also called for changes to settlement finality rules and greater clarity around the use of stablecoins as settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term assets. The FCA confirmed that stablecoins can be used within the DSS, subject to conditions and Treasury amendments.
Interoperability was also identified as a major concern. Respondents called for work across traditional and tokenised infrastructure, different blockchains and jurisdictions. The FCA said industry should lead on technical standards.
For RSIC custody, most respondents favoured a technology-neutral regime broadly aligned with CASS 6. The FCA plans to consult on safeguarding rules in the first half of 2027. Until then, firms will be assessed under CASS 6.
The FCA has also launched a separate call for input on tokenised gold.
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