The United Kingdom has assembled 54 financial firms — including Blackrock, JPMorgan, Goldman Sachs and Circle — into a government-backed taskforce to build live tokenization use cases, starting with tokenized repo. A Treasury-backed report estimates the shift could add up to $44 billion in annual UK output by 2035.
The United Kingdom is moving from tokenization policy to live market design, pulling some of the world’s largest financial institutions into a taskforce built around blockchain-based wholesale finance. The 54-firm group includes Blackrock, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, UBS, Barclays, Citi, State Street, Coinbase, Circle, Ripple and Wintermute.
The group works under the U.K.’s Wholesale Digital Markets Champion, Chris Woolard, whose first report to the Chancellor sets out a roadmap for tokenized wholesale markets. Over the next year, the taskforce will develop practical use cases across U.K. financial markets, beginning with an end-to-end tokenized repo transaction — a core piece of short-term funding markets where securities are swapped for cash and later repurchased.
Repo leads the roadmap
The report frames repo as a logical starting point because collateral movement, settlement speed, and liquidity sit at the center of wholesale market efficiency. The taskforce plans action groups across nine areas, with an orchestration group coordinating the repo use case on blockchain.
That work covers interoperability and cross-border testing, both needed if tokenized markets are to move past isolated pilots. The roadmap also calls for tokenization use cases in fixed income and uncleared over-the-counter derivatives, and it recommends building on the U.K.’s Digital Gilt Instrument, known as DIGIT, with an initial pilot issuance no later than the first quarter of 2027.
A large economic prize
The report casts tokenization as both a technology upgrade and a competitiveness question for the City of London. It estimates tokenized real-world assets could reach $88 trillion by 2035, against about $3 trillion for today’s crypto and stablecoin markets. For the U.K., the potential benefit is put at up to $44 billion in additional annual output and $18.7 billion in yearly tax revenue by 2035.
But the report warns that without a clear national roadmap, standards, infrastructure and liquidity could develop offshore, weakening the U.K.’s standing as a global financial center. It also notes that tokenized assets made up only 0.01% of investable assets in 2025, yet grew 300% that year.
Source: Bitcoin News
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