The technology underpinning global financial markets is rapidly evolving, and countries around the world are competing to attract the investment, liquidity and expertise. Tokenisation offers an opportunity to boost efficiency, support growth and strengthen the UK’s competitiveness.

We risk losing ground to international competitors if we do not act quickly enough to develop digital wholesale markets and establish a clear strategy for adoption at scale.

This report draws on extensive engagement across market participants, infrastructure providers, government and regulators, and makes four key recommendations:

• Set a single, holistic vision for digital wholesale markets – Set a clear roadmap and governance framework to enable digital assets, money and financial obligations to move seamlessly across markets, creating a more efficient, resilient and globally competitive system.

• Align digital money and tokenisation strategies – Improve co-ordination across public and private sector initiatives to support interoperability, transparency and greater certainty on the future direction of digital markets.

• Empower the Digital Markets Champion – Strengthen the role’s authority and resources to co-ordinate activity, drive accountability and accelerate the adoption of digital market infrastructure at scale.

• Focus on priority markets – Prioritise areas of existing strength, including sovereign debt, repo, collateral management, money markets and foreign exchange, using initiatives such as DIGIT issuance to help build liquidity and market scale.

The UK has the legal, regulatory and market foundations needed to build a position of leadership in the next generation of digital wholesale markets, but the challenge now is delivering on that potential. While significant progress has been made, other jurisdictions are moving quickly to also attract investment, liquidity and market activity.

The next few years will determine where future market infrastructure and standards are developed. Government, regulators and industry must now work together to create deep, liquid and internationally connected digital markets, ensuring the UK not only embraces the future of finance but helps shape and lead it, rather than adapting to standards set elsewhere.

Bob Wigley, Chair of UK Finance, said: “The UK’s capital markets are deep, global and highly specialised – and backed by a strong legal and regulatory framework. By focusing on wholesale fixed income markets and by committing to the right architecture, governance and coordination, the UK can lead the next phase of financial innovation. Tokenisation will reshape market infrastructure – the question is whether the UK wants to shape it or adapt to decisions made elsewhere.”

Jason Ekberg, Partner and Global Digital Assets Lead, Oliver Wyman, said: “The UK is well positioned to become a leading global centre for tokenised wholesale markets. The opportunity now is to turn those strengths into markets operating at scale. Tokenisation can make capital, collateral and liquidity move more efficiently through the financial system, with the greatest potential coming from connecting digital assets, money, and market infrastructure rather than developing them in isolation. If the UK can build that connected ecosystem, it will be well placed to help shape the next generation of global wholesale markets.”