Key Highlights

  • The Bank of England opened a formal consultation on extending its RTGS and CHAPS payment systems toward near 24/7 operation as part of a coordinated push to integrate tokenized finance into core UK markets.

  • Sixteen firms including HSBC and London Stock Exchange Group are preparing to launch tokenized trading and settlement services through the UK's Digital Securities Sandbox from late 2026.

  • Deputy Governor Sarah Breeden confirmed stablecoins, tokenized deposits, and a future digital pound will all operate across compatible rails within a unified multi-money system.

The Bank of England has taken its most concrete step yet toward integrating tokenized finance into the UK's core financial infrastructure, opening a formal consultation on extending the operating hours of its Real-Time Gross Settlement system and CHAPS high-value payment network toward near 24/7 operation. As detailed in a joint vision statement published this week, the proposals are designed to create settlement infrastructure capable of handling tokenized assets alongside traditional instruments without requiring separate parallel systems.

Alongside the consultation, the Bank confirmed that sixteen firms are now active in the UK's Digital Securities Sandbox, a regulatory environment that allows institutions to test tokenized trading and settlement services under live conditions before broader authorization. Participants include HSBC and London Stock Exchange Group, both of which are preparing to launch commercial services through the sandbox from late 2026 onward. The program is a joint initiative between the Bank of England and the Financial Conduct Authority.

Speaking at City Week 2026 in London, Bank of England Deputy Governor Sarah Breeden outlined a vision for a unified multi-money ecosystem in which stablecoins, tokenized bank deposits, and central bank money would all operate across compatible payment rails. The Bank plans to release draft rules for systemic stablecoins next month, ahead of a finalized framework later in the year. Breeden specifically noted that stablecoins and a potential future digital pound are not competing instruments but complementary components of the same system.

The Bank's moves represent a significant step toward formally merging tokenized settlement with central bank payment architecture. The joint vision published with the FCA establishes shared principles for digital wholesale markets, a development with implications for how cross-border and intraday settlement is handled. Once the sandbox participants launch live commercial services from late 2026, the UK will have one of the most institutionally tested environments for tokenized securities among major financial jurisdictions.