Ripple Supports UK Tokenization Strategy as Government Targets £33 Billion Annual Economic Growth

• Ripple supports the UK strategy for wholesale tokenization with the aim of generating up to £33 billion in economic output per year by 2035.
• The government-sponsored taskforce will conduct live tokenized repo transactions and issuance of digital gilt.

Ripple is supporting the United Kingdom’s strategy that seeks to grow the adoption of tokenization infrastructure within wholesale financial markets. The move came after a recommendation from Chris Woolard, who was appointed as Wholesale Digital Markets Champion in April by HM Treasury.

The plan is aimed at taking the financial market infrastructure from the experimental phase in blockchain technology to the production phase. According to Ripple, tokenized funds, government bonds, and repo transactions will enhance settlement efficiency while cutting down the costs.

The government-sponsored taskforce estimates that tokenization will help generate up to £33 billion in economic output annually by 2035. Additionally, the report forecasts around £14 billion in annual tax revenue if the tokenization continues to grow in terms of regulation and adoption. This will happen if the UK gets a significant portion of the global market for tokenized assets worth around $88 trillion in 2035.

Taskforce to Prioritize Repurchase Markets and Digital Gilts

The taskforce includes fifty-four organizations representing banks, digital asset firms, market infrastructure providers, and asset managers. Members will collaborate through nine action groups covering settlement, collateral, legal standards, and market access. The group will first focus on tokenized repo transactions using securities as collateral for short-term borrowing. 

It aims to complete the first end-to-end tokenized repo transaction before spring 2027. The strategy also supports the DIGIT initiative and recommends issuing the UK’s first digital gilt before early 2027. Additionally, the taskforce seeks regulatory clarity on tokenized government bonds qualifying as collateral to integrate digital securities into mainstream wholesale financial markets.

Regulators Gear up Markets for Production

The Financial Conduct Authority and the Bank of England continue supervising sixteen firms participating in the Digital Securities Sandbox. Participants are testing tokenized bonds, equities, and investment fund issuance alongside settlement processes. Regulators are gathering industry feedback on settlement assets, blockchain interoperability, tokenized collateral, and market infrastructure. They now aim to transition tokenized securities from pilot programs into live production markets. 

The report notes that tokenization improves operational efficiency but does not eliminate credit, operational, or counterparty risks. The taskforce will evaluate whether blockchain-based systems satisfy wholesale market regulatory standards. Ripple said Britain’s regulatory framework and capital markets support tokenized finance, while HM Treasury, regulators, and industry participants continue advancing milestones before the September 4 feedback deadline. 

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