The U.K. government has published a roadmap for tokenizing wholesale financial markets, projecting the initiative could add up to £33 billion in annual economic output and £14 billion in annual tax revenue by 2035. The first report from the government's Wholesale Digital Markets Champion, Christopher Woolard, focuses on tokenized government bonds, stablecoins, and onchain settlements as the U.K. positions itself as a global crypto and digital financial hub. The report warns that without a solid plan, the U.K. risks losing liquidity, influence, and market share as tokenization moves firmly beyond experimentation to become a keystone of next-generation financial markets.
UK Projects £33 Billion Annual Economic Boost from Tokenization by 2035
The roadmap estimates the global tokenized asset market could reach $88 trillion by 2035, up from roughly $23 billion according to The Block's estimates, though other industry trackers place the current market closer to $36 billion. The report notes that tokenization has moved firmly beyond experimentation and is becoming a keystone to the next generation of financial markets.
Digital Gilt Instrument Pilot Targets First Issuance in Q1 2027
Among its recommendations, the report calls for the U.K. to prioritize its Digital Gilt Instrument (DIGIT) pilot and aim for first issuance by the first quarter of 2027. The roadmap also recommends expanding the use of tokenized collateral and building the payment rails to settle tokenized assets and stablecoins. The report recognizes the need to establish legal and tax standards so institutions will be comfortable adopting the technology.
Industry Leaders Respond to Tokenization Roadmap
Ripple's Head of Policy UK & Europe Matthew Osborne said in a statement that the report marks "a promising step forward." Osborne stated, "The tokenisation of financial markets is already happening, delivering onchain funds, bonds and repo that are more liquid, mobile and efficient than their legacy equivalents."
Banking Circle's Chief Digital Assets Officer Kirit Bhatia agreed that the roadmap acknowledges the need to modernize payment infrastructure to support tokenized assets.
Report Identifies Infrastructure Requirements for Tokenized Markets
Bhatia explained that "tokenised markets will need payment infrastructure that can support real-time settlement, cross-border movement, multiple forms of regulated money and interoperability between stablecoins, tokenised deposits and existing fiat rails." He added, "Without that, digital assets risk becoming faster at the edges but still constrained by the legacy plumbing underneath."
FAQ
What economic impact does the UK tokenization roadmap project by 2035?
The roadmap projects the initiative could add up to £33 billion in annual economic output and £14 billion in annual tax revenue by 2035 if the UK can move quickly to build the supporting infrastructure.
When does the UK plan to issue its first tokenized government bond?
The report calls for the UK to prioritize its Digital Gilt Instrument (DIGIT) pilot and aim for first issuance by the first quarter of 2027.
What is the projected size of the global tokenized asset market by 2035?
The report estimates the global tokenized asset market could reach $88 trillion by 2035, up from roughly $23 billion to $36 billion today according to various industry estimates.
