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UK Treasury report aims to move tokenized repo and gilts on chain
The Treasury-backed plan targets live tokenized wholesale markets within about two years, with a 12-month path to take tokenized repo, gilts, and funds from sandbox pilots.
A U.K. Treasury-backed report on wholesale digital markets says the government aims to move tokenized assets, including repo, gilts, and funds, into live markets within two years. The effort is framed around a push to take sandbox pilots into production, with a 12-month roadmap laid out in the report.
CoinDesk reports the Treasury named Ripple as a key convergence model and a credentialed firm supporting the work, citing Ripple’s acquisition of prime broker Hidden Road and Santander UK’s use of Ripple rails. The report promotes a hybrid approach that layers permissioned institutional networks on top of permissionless chains to share liquidity while managing operational needs.
The report also highlights settlement-finality risks on public blockchains, warning that chain reorganizations can, in theory, reverse a confirmed transaction, a problem traditional market infrastructure does not face. It cites BlackRock’s tokenized money market fund BUIDL as an example, issued on Ethereum with a Securitize compliance wrapper.
The Treasury’s wholesale digital markets champion, Chris Woolard, argues the program could deliver sizable economic benefits, including productivity and cost efficiencies that the report estimates could raise annual economic output by 33 billion pounds and increase the tax take by 14 billion pounds per year within a decade. Ripple is described as part of a task force helping drive the transition.
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