Bank of England and FCA launch consultation on tokenized UK wholesale markets!

The Financial Conduct Authority and the Bank of England have jointly opened a formal consultation on the regulation and infrastructure needed to support tokenized wholesale markets in the UK. The move signals that two of Britain's most powerful financial authorities are now actively shaping the rulebook — not just watching the space develop.

The consultation runs alongside the Digital Securities Sandbox, where 16 firms are already testing live issuance and settlement of tokenized assets in a supervised environment. That live pipeline gives the regulators real-world data to inform the framework they're building, a dynamic that sets this process apart from purely theoretical rulemaking.

For institutional participants, the combination of a live sandbox and a formal consultation is the clearest signal yet that the UK intends to position itself as a serious jurisdiction for tokenized…