Ripple has backed a new UK strategy designed to move wholesale financial markets towards tokenized infrastructure.
The plan comes from digital wholesale markets champion Chris Woolard, who was appointed by HM Treasury in April. Ripple said that on-chain funds, bonds and repo transactions are no longer limited to trials and can offer faster and cheaper financial processes. The company is among the industry players supporting the government-linked task force.
The strategy places the UK’s major capital markets at the center of the plan. It estimates that wider tokenization could add “up to £33 billion” to annual economic output and £14 billion in annual tax revenue by 2035. These figures depend on the UK adopting, regulating and capturing a significant share of a global market for tokenized assets that the report puts at a possible $88 trillion by 2035.
Working group targets tokenized repo and digital gilts
The working group includes 54 companies from the banking, asset management, market infrastructure and digital assets sectors. It will create nine action groups covering areas such as safeguards, regulation, legal standards and market access. The first practical objective will be token repo, where securities serve as collateral for short-term liquidity borrowing. The group aims to test and, if possible, execute a live end-to-end repo transaction by spring 2027.
The plan also calls for progress on DIGIT, the UK government’s proposed digital gilt instrument. Woolard wants the government to issue the first digital gilt by early 2027 and supports a later issue.
The report also asks the authorities to clarify whether token government bonds can be considered collateralized. These measures would help companies use digital securities in existing wholesale markets rather than keeping them in separate pilot systems.
Regulators prepare markets for live tokenized assets
The UK has already opened regulated tests for tokenized securities. As previously reported, the Financial Conduct Authority and the Bank of England are working with 16 companies as part of the Digital Securities Sandbox.
The program covers the issuance and direct settlement of tokenized bonds, shares and fund units. Regulators also requested market feedback on settlement assets, tokenized collateral, and links between blockchain networks and existing infrastructure.
The Bank of England and the FCA have said the next stage should move activity from the pilot stage to the production phase. However, businesses still need clear rules on custody, capital treatment, legal ownership and settlement amount.
Additionally, tokenization can reduce manual work and settlement delays, but it does not remove credit, operational or counterparty risk. The working group will need to demonstrate that the new systems meet the standards already required in regulated wholesale markets.
Ripple links UK strategy to broader market growth
Ripple’s support fits its broader work in payments, stablecoins, custody, and tokenized assets. The company said Britain had the market depth and regulatory status to lead tokenized wholesale funding. This statement reflects Ripple’s business view. The report does not attribute control of the program to Ripple, and the UK Treasury, regulators and the wider working group will shape the final rules and technical standards.
As crypto.news previously reported, real-world tokenized assets have increased as banks and asset managers move funds, government debt, and pension transactions to blockchain-based systems. The UK plan now sets out a 12-month delivery program around real-world use cases rather than broad policy objectives.
Its progress will depend on whether companies complete the repo trial, develop secondary markets, and connect digital assets to central bank and commercial bank currency. The group will release updates throughout the year and has solicited industry feedback through September 4 on priorities and timeline.
