- The FCA and BoE are consulting on tokenised finance rules and the near 24/7 payment system.
- The 24/7 settlement could transform liquidity in tokenised markets by eliminating the legacy banking-hour batching effect.
The Financial Conduct Authority (FCA) and Bank of England (BoE) are consulting on guidance for tokenised finance, a report reveals. The regulators are also planning to extend the core payment system towards a near 24/7 operation.
“The Bank and FCA have done a huge amount to enable the responsible adoption of tokenisation in retail and wholesale finance in the UK, working with the government and the industry. The task now is for public and private sectors together to build on these strong foundations, moving from pilots to production to support financial stability and sustainable growth,” said Sarah Breeden, BOE deputy governor for financial stability.
BoE proposes longer hours, including weekends, for its Real-Time Gross Settlement (RTGS) and CHAPS systems to support tokenised markets, cross-border payments, and new settlement models.
Feedback is open until July 3, 2026, with a response expected in the summer. The FCA initially highlighted tokenisation and distributed ledger technology as tools to improve efficiency in asset management.
Separately, the Prudential Regulation Authority (PRA) issued interim guidance stating that tokenised assets should be regulated similarly to traditional instruments when risks align. This approach is pending a broader framework influenced by the Basel Committee on Banking Supervision review of crypto exposures launched in 2025.
The FCA regime consultation covering stablecoins, custody, trading, and staking aims for implementation by October 2027, while PRA plans a full consultation by 2028.
See Related: IMF Warns Tokenisation Could Disrupt Global Finance With New Crypto Risks
How 24/7 Settlement Could Transform Liquidity In Tokenised Markets
The 24/7 settlement could mark a structural shift in how liquidity functions in tokenised markets by removing the traditional “batching effect” of legacy banking hours.
Industry experts argue that extended RTGS and CHAPS availability would better support “a multi-money ecosystem” where tokenised deposits and stablecoins can move seamlessly across infrastructures. This, in turn, would improve interoperability and reduce funding delays.
According to the FCA, tokenisation can “reshape how assets are issued, traded and settled,” enabling faster market functioning and lowering cost through reduced friction. Analysts also note that continuous settlement would improve collateral mobility and reduce intraday liquidity stress, particularly in cross-border transactions.
