What is the UK proposing for tokenised financial markets?

The Bank of England proposed extending settlement system operating hours toward near-24/7 availability to support tokenised finance and blockchain-based payment infrastructure.

Why does near-24/7 settlement matter for tokenised assets?

Tokenised assets can trade continuously on blockchain networks, unlike traditional markets with fixed operating hours. Extending settlement availability could help traditional financial infrastructure better support always-on digital markets.

Why are regulators focusing on tokenisation now?

Financial institutions increasingly see tokenisation as a way to improve settlement speed, reduce operational costs and modernise capital markets. Regulators are trying to prepare legal and financial systems for wider blockchain adoption.

What role does the Financial Conduct Authority play in this plan?

The Financial Conduct Authority is leading consultations on tokenisation guidance and broader crypto market rules as part of the UK’s digital asset regulatory strategy.

How could tokenisation improve financial markets?

Tokenisation may allow faster settlement, automated clearing and improved cross-border transactions through blockchain infrastructure. Supporters also argue it could make markets more efficient and accessible globally.

Why are crypto companies supportive of the UK’s plans?

Crypto and blockchain firms view regulatory clarity as essential for institutional adoption. Clear tokenisation rules may encourage banks, asset managers and fintech companies to build more blockchain-based products in the UK.

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UK pushes near-24/7 tokenised settlement system

Q: What systems would the UK extend operating hours for?

The proposal would expand hours for the UK’s Real-Time Gross Settlement system and the Clearing House Automated Payment System. These systems are core parts of the country’s banking and payment infrastructure.

Q: What did the Prudential Regulation Authority propose?

The Prudential Regulation Authority said tokenised financial instruments should receive the same regulatory treatment as traditional assets when legal rights and risks are comparable.

Written by Brie CarterPublished May 19, 2026, 4:39 AM

The Bank of England proposed extending operating hours for the country’s core payment and settlement infrastructure toward near-24/7 availability as part of broader efforts to prepare UK financial markets for tokenised assets.

The proposal would expand weekend and daily operating hours for the Real-Time Gross Settlement system and the Clearing House Automated Payment System to support tokenised finance and cross-border payments.

The consultation was launched jointly with the Financial Conduct Authority, which is also seeking feedback on tokenisation and blockchain-based financial infrastructure as part of the UK’s broader digital asset regulatory strategy.

“Fantastic to see the UK setting out a clear vision for tokenisation in wholesale markets,”

Said Katie Harries.

The Prudential Regulation Authority separately proposed updated guidance stating tokenised financial instruments should receive the same regulatory treatment as traditional assets when legal rights and risks are equivalent.

UK regulators said the reforms could improve settlement efficiency, support new blockchain-based payment models and strengthen the competitiveness of the country’s asset management industry as tokenisation adoption expands globally.

The Prudential Regulation Authority said it expects to consult on a broader long-term framework for tokenised assets from 2028 onward, while the Financial Conduct Authority plans to fully implement its crypto regulatory regime by October 2027.