UK Tokenization Drive Could Boost Annual Output by $44B by 2035
A government-backed roadmap targets the UK's first digital gilt by early 2027 and aims to make tokenized bonds tradeable and usable as collateral.
A government-backed tokenization roadmap for the United Kingdom could add as much as $44 billion to the country's annual economic output by 2035, according to a new report, positioning Britain as a global hub for digital financial infrastructure amid intensifying international competition.
At the heart of the plan is an ambitious timeline for sovereign digital debt: the roadmap calls for the UK to issue its first digital gilt — a government bond recorded and settled on distributed-ledger technology — by early 2027. The move would mark a significant milestone for a G7 economy embracing blockchain-based capital markets at the institutional level.
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Beyond sovereign issuance, the roadmap seeks to make tokenized bonds functional instruments for everyday market activity, enabling them to be used both for trading on secondary markets and as collateral for borrowing. Broadening the utility of tokenized securities is widely seen as a prerequisite for unlocking liquidity and attracting institutional participation at scale.
The initiative reflects a broader strategic push by UK policymakers to cement London's standing as a competitive financial center post-Brexit, particularly as jurisdictions including the European Union, Singapore, and the United States accelerate their own digital-asset and tokenization frameworks. Analysts note that the $44 billion output projection underscores the macroeconomic stakes of getting the regulatory and technical infrastructure right before the decade closes.
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