This Legal Update summarises the joint Call for Input published by the Financial Conduct Authority (“FCA”) and the Bank of England (“BoE”) (together, the “regulators”) in May 2026. The paper invites industry responses by 3 July 2026.
What is the Purpose of this Consultation?
The goal of the Call for Input is to seek industry feedback on the proposed regulatory approach to tokenisation. The paper is aimed at “firms across the wholesale ecosystem and the focus is on tokenised securities (such as bonds, cash equities and fund units)“. The aim is for a digitally enabled wholesale markets ecosystem in which tokenised securities, cash and collateral move more efficiently across the trade lifecycle. The proposed end state is for this ecosystem to be anchored in central bank money settlement.
The paper:
- Provides a set of agreed regulatory principles and operational considerations that the regulators intend to follow in any future changes to policy and regulation in this area; and
- Clarifies a set of key priority areas where further regulation is required and offers an initial regulatory roadmap of initiatives that will support the market evolution.
A series of high level questions are posed to market participants as a call for input to help frame further regulation in this area.
Continue reading this Legal Update.