In a speech at UK Finance, the Economic Secretary to the Treasury outlined the government’s priorities for scaling tokenised wholesale financial markets, with an emphasis on coordination among industry, government and regulators. The next phase will focus on interoperability, liquidity, common standards and regulatory clarity to help digital markets move from pilots to broader adoption. HM Treasury will engage with the sector to identify and plan legal changes needed beyond the Digital Securities Sandbox, including through existing legislative tools. The sandbox currently has 16 participating firms, and the first firm has recently been approved to conduct live activity. The government plans to issue the Digital Gilt Instrument in the first quarter of 2027 and prepare for possible further issuances, subject to the first transaction’s success. Related work includes reforms supporting stablecoins, tokenised deposits and digital settlement, alongside the banking industry’s Great British Tokenised Deposit initiative.

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