BlackRock and JPMorgan back U.K. push into tokenized finance

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U.K. advances tokenized

Highlights

The U.K. taskforce includes 54 financial and crypto firms.
BlackRock, JPMorgan, Coinbase, Circle, and Ripple are among the members.
The first test case will be a tokenized repo transaction.
The U.K. sees up to $44 billion in annual output gains by 2035.

The 54-firm group includes BlackRock, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, UBS, Barclays, Citi, State Street, Coinbase, Circle, Ripple and Wintermute, according to Bitcoin.com News. The work is being led under the U.K.’s Wholesale Digital Markets Champion, Chris Woolard, whose first report to the Chancellor lays out a roadmap for tokenized wholesale markets.

Repo becomes the first live test

The taskforce will spend the next year developing practical use cases across U.K. financial markets. Its first focus is an end-to-end tokenized repo transaction, where securities are exchanged for cash and later repurchased.

Repo is a logical starting point because it sits close to the plumbing of financial markets. Collateral movement, settlement speed and liquidity all matter heavily in short-term funding, and tokenization could be tested there without immediately trying to rebuild broader capital markets.

The report calls for action groups across nine areas, with an orchestration group coordinating the repo project on blockchain. The work will also include interoperability and cross-border testing, two issues that have often kept tokenized market pilots from scaling beyond isolated trials.

Fixed income and derivatives are next

The roadmap also points to tokenization use cases in fixed income and uncleared over-the-counter derivatives. It recommends building on the U.K.’s Digital Gilt Instrument, known as DIGIT, with an initial pilot issuance no later than the first quarter of 2027.

That puts government debt, collateral, and derivatives infrastructure at the center of the U.K.’s digital-markets strategy. Rather than treating tokenization mainly as a crypto-market product, the task force is looking at areas where the largest institutional liquidity already exists.

London tests its market edge

The report frames tokenization as a competitiveness issue for the City of London. It estimates tokenized real-world assets could reach $88 trillion by 2035, compared with about $3 trillion for today’s crypto and stablecoin markets.

For the U.K., the potential prize is estimated at up to $44 billion in additional annual economic output and $18.7 billion in annual tax revenue by 2035. The warning is that without clear standards, liquidity and infrastructure could develop offshore.

Tokenized assets still represented only 0.01% of investable assets in 2025, though they grew 300% that year. That makes the taskforce a test of whether tokenization can move from experiments into wholesale finance.

Earlier, we reported that the UK aims to finalize crypto regulation by 2027 under FCA oversight.

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