UK Treasury Sets Out Wholesale Digital Asset Strategy

The UK government this week published its long-awaited strategy for wholesale financial markets and digital assets. HM Treasury said the plan outlines a path to remove existing barriers to tokenization and other digital innovations in wholesale markets. The Treasury also acknowledged that current regulations need updating to accommodate the shift toward blockchain-based settlement and trading.

No specific legislative timeline was attached to the proposals. The strategy is the first formal statement from the government on how it intends to position London as a hub for digital asset infrastructure, particularly for institutional-grade tokenization of stocks, bonds, and other securities.

The Treasury's recognition of the need for regulatory updates follows similar moves by the European Union and Singapore, though the UK has not yet published draft rules.