UK tokenization plan could lift annual output by $44 billion by 2035

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UK tokenization plan economic boost

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UK government estimates tokenization plan could increase annual output by $44 billion by 2035, according to Chris Woolard's first industry report.
The roadmap calls for the UK's first tokenized government bond to be issued by Q1 2027, with live trading, settlement, and collateral use as targets.
London-based Fnality will launch a sterling-denominated system on Sept. 23, 2025, supporting real-time settlement for tokenized securities and cross-currency payments tied to central bank reserves.

Roadmap sets targets for tokenized markets

As reported by Cointelegraph, the estimate comes from the first report by Wholesale Digital Markets Champion Chris Woolard, who HM Treasury appointed to help carry out the government's digital markets strategy.

Prepared with an industry task force, the report lays out a 12-month plan to test blockchain in a financial transaction in which securities are used to borrow cash. It also calls for the UK to issue its first tokenized government bond by the first quarter of 2027.

The roadmap is designed to move tokenization beyond isolated pilots and into live markets where securities can be traded, settled and used as collateral. The report says the next step is to move from pilots to scale and from ambition to action.

Ripple, which is listed as one of the task force's industry members, backs the initiative. The company says onchain funds, bonds and repo are already proving cheaper, better and faster than legacy alternatives.

Digital gilt plans build on earlier initiatives

The proposed digital government bond, or gilt, is not a new concept in the UK. The government first announces the Digital Gilt Instrument pilot in November 2024, then follows with a July 2025 update that outlines plans for onchain settlement, over-the-counter trading and secondary market development.

On Feb. 12, the government appoints HSBC's Orion platform to support the pilot. The new report adds a timetable and broadens the intended use of the instrument by calling for further digital gilt issuance, live secondary-market trading and eligibility for central bank collateral.

The report argues tokenized securities have limited value unless they can be traded or used to raise cash, and urges the Bank of England to accept digital gilts as collateral. The UK also has supporting payment infrastructure after London-based Fnality launches a sterling-denominated system on Sept. 23, 2025, tied to central bank reserves and designed for real-time repo, tokenized securities settlement and cross-currency payments.

Our earlier coverage of Chris Woolard’s tokenisation roadmap explained that the UK is working on a 12-month plan to bring blockchain into wholesale finance, including issuing a sovereign bond onchain and proving tokenised assets can be used as collateral in repo markets. The report also outlined the potential economic upside from faster market digitisation and warned that the UK must move quickly to stay competitive with other global financial hubs.

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