Britain’s ambition to become a leading hub for digital assets received a decisive lift this week when BlackRock and HSBC formally joined a government‑led tokenisation taskforce that already counts 52 other financial institutions. The group, chaired by Christopher Woolard – the Treasury’s wholesale digital markets champion – is tasked with moving from isolated pilots to live, regulated markets, beginning with a tokenised repo trial slated for spring 2027.
The move follows a Treasury‑commissioned study that projects tokenising bonds, funds and property could contribute up to $44 billion (£33 billion) to UK output by 2035. Roughly two‑thirds of that uplift would stem from sectors outside traditional finance, as capital trapped in legacy back‑office systems is released for productive use.Why the focus on tokenisation now? The market for real‑world asset (RWA) tokens, though still modest at about $30 billion in 2025, has surged 300 % in a single year. Analysts at BCG forecast a global tokenised‑asset market of $55 trillion by 2035, suggesting that early adopters could capture a sizeable share of a rapidly expanding ecosystem.
For institutional players, the taskforce offers a clear pathway to embed blockchain‑based settlement into core operations. BlackRock’s BUIDL fund, already the largest tokenised U.S. Treasury vehicle with $2.4 billion under management, registered as a UK crypto‑asset firm in 2025, signalling intent to shift a portion of its sovereign‑bond exposure onto a regulated digital ledger. HSBC, meanwhile, has issued digital bonds through its Orion platform, providing a proof point that large banks can meet compliance while leveraging faster settlement.
The first use case – a tokenised repo market – is strategically chosen. Repos are the backbone of short‑term funding for banks and asset managers; digitising them could cut settlement times from days to minutes and free up collateral that currently sits idle. A successful pilot would lay the groundwork for tokenised fixed‑income and derivative products, creating a cascade of efficiency gains across the financial system.
Market reaction has been cautiously optimistic. JPMorgan, Goldman Sachs, Morgan Stanley and Citi have all signed up, indicating that the major banks see tokenisation as a competitive lever rather than a niche experiment. Crypto‑native firms such as Circle, Ripple and Coinbase are also on board, suggesting a convergence of traditional finance and decentralized‑finance expertise.
Beyond the balance sheet, the broader economy stands to benefit. Faster settlement reduces counterparty risk, which can lower borrowing costs for businesses that rely on short‑term financing. Moreover, tokenised ownership of property and infrastructure assets could unlock new investment channels for retail savers, diversifying capital flows.
Regulators are watching closely. The taskforce’s roadmap, released in July 2026, outlines a phased approach that aligns with existing securities law while allowing the UK’s Financial Conduct Authority to develop bespoke guidance for tokenised instruments. By anchoring the rollout in a clear regulatory framework, the government hopes to avoid the fragmented sandbox approach that has characterised earlier fintech experiments.
In the context of global competition, the UK’s push contrasts with the United States, where regulatory clarity remains uneven, and with the European Union, where tokenisation initiatives are still largely pilot‑driven. If the UK can demonstrate a live, compliant tokenised market by 2027, it could attract cross‑border capital and cement its status as a digital‑asset gateway.
Ultimately, the success of the tokenisation push will hinge on whether the promised efficiency translates into measurable cost savings and whether institutional investors adopt the new workflow at scale. The taskforce’s incremental, use‑case‑first strategy is designed to answer those questions before the sector expands further.
