The Bank of England and the Financial Conduct Authority (FCA) have opened a joint Call for Input aimed at forging a shared vision for tokenization — a clear sign the UK's top financial regulators are ready to move past pilot projects and toward real-world adoption.
The move, announced jointly by the two bodies, asks market participants, technology firms, and other stakeholders to weigh in on how tokenization could be safely integrated into the country's financial infrastructure. It's the first time the BoE and FCA have teamed up on a formal request for industry input on the topic, marking a coordinated attempt to align expectations before any major policy shifts.
What the Call for Input Seeks
Tokenization — the process of converting traditional assets like bonds, shares, or even central bank reserves into digital tokens that can be traded on a distributed ledger — has been tested in limited trials for years. Both the BoE and FCA have run their own sandbox experiments and industry pilots. This call suggests they now want a single, coherent roadmap.
The regulators are asking for feedback on a range of practical questions: how tokenized assets should be treated under existing law, what safeguards are needed to prevent market disruption, and how interoperability between different token systems could work. The document does not propose specific rules; instead, it invites ideas for a 'shared vision' that both agencies could adopt together.
That matters because the BoE oversees payment systems and central bank money, while the FCA regulates securities and conduct. A split vision could create confusion. The joint approach aims to prevent that.
Tokenization has been a hot topic in London's financial district for the better part of a decade. Several private-sector projects have already issued tokenized bonds or funds, but they've operated in regulatory gray areas or under temporary waivers. The BoE and FCA are signaling that they want to bring those experiments into a more permanent framework.
The timing isn't accidental. Other jurisdictions — including the European Union with its DLT Pilot Regime and Singapore with its Project Guardian — are already drafting rules for digital assets. The UK, which left the EU in 2020, needs its own playbook if it wants to remain competitive as a financial hub.
But the regulators are also cautious. The Call for Input emphasizes that any new framework must maintain financial stability and protect consumers. They're not rushing. They're asking for evidence before committing to any major change.
What Comes Next
The Call for Input is open for responses through a deadline that the BoE and FCA have yet to specify. After that, they'll publish a summary of the feedback and outline next steps. If the responses point toward broad consensus, the agencies could move to formal consultations on specific rule changes.
One unresolved question is how quickly they can act. Tokenization touches everything from settlement systems to securities law, and different parts of the government — including HM Treasury — will need to be involved. The BoE and FCA have set a goal of aligning their visions, but turning that vision into binding regulation will take longer. For now, the ball is in the industry's court.
