The Bank of England launched a formal consultation on May 18 to push its RTGS and CHAPS settlement systems toward near-continuous operation, alongside a plan to let tokenized assets serve as collateral in central bank operations. The proposals would add a weekend settlement day and lengthen weekday windows, with the first changes not expected before 2029 and a fuller overhaul by 2031.
Two-step timeline
The consultation lays out a phased approach. Step one: an additional settlement day on weekends, likely Sunday. Step two: lengthening the settlement window on existing days. Implementation won't start before 2029 for the weekend day and 2031 for the longer windows. Further down the road, the BoE is reviewing a 22×6 model and near-continuous 23.5×7 CHAPS settlement — a rhythm that mirrors always-on blockchain architecture.
The synchronization service
More consequential than the hours extension is a synchronization service the BoE commits to launch by 2028. It allows simultaneous and conditional movement of asset and cash legs on a distributed ledger. That changes counterparty risk: instead of settling and then waiting for the other side, both legs move at the same time. The service would enable tokenized equivalents of eligible assets to be used as collateral at central counterparties and in central bank operations.
Regulatory shift
The Prudential Regulation Authority updated guidance on tokenized asset exposures and innovations in deposits, e-money, and stablecoins. The tone signals a lighter approach to wholesale stablecoins. Taken together, the package shows UK regulators moving away from treating blockchain-native finance as a problem and toward using it as a reference point for redesigning markets.
Market impact
Near-continuous settlement improves collateral mobility across repo markets, derivatives positions, and other areas. That means traders and institutions can move collateral faster and more frequently without waiting for batch settlement windows. The consultation is open for comment, and the Bank plans to deliver the synchronization service by 2028 — a concrete deadline that gives the industry a timeline to prepare.
