City Minister Lucy Rigby has said accelerating the digitalisation of Britain’s financial markets is a strategic priority for the Government, as work continues on plans to make the UK a global leader in tokenised finance.
The Labour MP met the UK’s Wholesale Digital Markets Champion, Chris Woolard CBE, to discuss the next stages of the programme following the publication of his first report to the Chancellor.
Writing on X, Rigby said:
“Driving the digitalisation of our financial markets is a strategic priority for this Government.”
She added:
“Industry, regulators & Government are coming together to drive real progress in this space - lots done; lots more to do!”
Woolard was appointed by the Government in April to lead industry efforts to increase the adoption of digital technology across Britain’s wholesale financial markets. His first report sets out a roadmap for developing tokenised markets, including nine industry-led action groups and priority areas for government, regulators and businesses.
Tokenisation involves representing financial assets digitally, potentially allowing transactions and settlements to take place more efficiently and reducing costs across capital markets.
The report argues that the potential economic prize for Britain is substantial. It cites estimates suggesting tokenised real-world assets globally could be worth $88 trillion by 2035, and says successful adoption could potentially add up to £33 billion a year to UK economic output and £14 billion in annual tax revenues by 2035.
Britain already handles more than £4 trillion of securities transactions on an average day, giving the country an established position from which to compete for the next generation of financial activity.
Woolard warns, however, that the UK cannot take its position for granted as other financial centres also race to develop digital market infrastructure.
His report says Britain needs a coordinated approach across government, regulators and industry to give firms confidence to invest and to ensure the UK remains internationally competitive.
The Government has already been pursuing initiatives including the Digital Securities Sandbox and plans for a digital government debt pilot, with ministers arguing that technological innovation can make UK markets more efficient while attracting new investment.
Rigby thanked Woolard and those involved in producing the report, saying the Government was now focused on moving the agenda forward.
The next phase will see the proposed industry action groups developed further, with work expected across areas including regulation, tax, interoperability and practical uses for tokenised assets. Woolard has said meaningful progress should be made by the end of 2026, with a second report focused on delivery to follow.
For Rigby, the ambition is to ensure Britain does not simply participate in the transformation of global financial markets but helps lead it — combining the UK’s established financial services strength with new technology and investment.
