The Bank of England and the Financial Conduct Authority have launched a joint consultation on the regulation of tokenized wholesale financial markets, while the central bank separately maps out a phased extension of its RTGS and CHAPS settlement system toward near round-the-clock operation.
The joint consultation, open for industry feedback until 3 July, seeks input from banks, investment firms, asset managers, and fintech companies on a legislative framework for tokenized bonds, stocks, fund units, and collateral systems. Regulators plan to release a coordinated roadmap and response later in 2026, coupled with workshops. The initiative builds on the UK government’s Wholesale Financial Markets Digital Strategy, which identified tokenization as a significant opportunity in post-trade processes and collateral management.
In parallel, the Bank of England is consulting on extended settlement hours for its real-time gross settlement service and CHAPS high-value payment system. Already planned is an earlier opening at 01:30 (instead of 06:00) from September 2027. A subsequent stage would add a Sunday settlement day and selected bank holidays, effective no earlier than 2029, and further hour expansion on those days not before 2031. The ultimate goal is a 22x6 or even 23.5x7 model, allowing almost continuous settlement. The BoE is soliciting feedback until 10 August on the costs and benefits of such a transition.
Both efforts aim to keep central bank money relevant as a settlement asset in an increasingly digital, tokenized financial system where stablecoins and tokenized deposits could otherwise operate outside traditional banking hours. A Digital Securities Sandbox is already live, with sixteen firms testing tokenized securities issuance and settlement. The move aligns with global trends as jurisdictions like the US, Singapore, and the EU advance institutional digital-asset frameworks.
