A government-backed report released by the UK wholesale finance regulator projects tokenized financial markets could add £33 billion to the economy each year by 2035, according to an announcement from the City of London Corporation. The roadmap calls for tokenized government bonds, stablecoins and onchain financial markets as core infrastructure.
The strategy includes a 54-firm taskforce assembled to design and implement the framework. BlackRock, Goldman Sachs, JPMorgan and Morgan Stanley are among the major financial institutions participating in the initiative alongside asset managers, custodians and infrastructure providers.
The report frames tokenization as a competitive priority for UK financial services. The City of London Corporation and HM Treasury positioned the roadmap as a response to similar efforts underway in the European Union, Singapore and the United States, where regulators and market participants are exploring onchain settlement and issuance of traditional financial instruments.
Tokenized bonds allow governments and corporates to issue debt directly on blockchain networks, potentially reducing settlement times from days to minutes and lowering intermediary costs. Stablecoins pegged to sterling could function as onchain payment rails for institutional transactions. The roadmap does not specify regulatory changes required but indicates the government intends to adapt existing frameworks to permit these activities.
The £33 billion figure represents estimated annual GDP impact across efficiency gains, new business creation and cost reductions across wholesale markets. The report does not detail the methodology for this projection or break it into component estimates by market segment.
The taskforce is expected to deliver detailed implementation proposals and a phased rollout timeline in coming months. No legislation has been introduced to enable tokenized finance at scale, and the framework remains subject to regulatory approval and market participant adoption.
