Bank of England to Extend Settlement Infrastructure to Near 24/7 to Support Tokenization

According to Deputy Governor Sarah Breeden at City Week on Tuesday, the Bank of England said tokenization could reduce costs, accelerate market settlement and improve payment functionality. Breeden outlined a framework in which tokenized deposits, regulated stablecoins and potentially a retail central bank digital currency would coexist with traditional bank money, with central bank money remaining the anchor of the system.

On Monday, the BoE proposed extending its main settlement infrastructure to near 24/7 availability to support cross-border payments and securities settlement as tokenized assets develop. The move is designed to reduce operational delays between always-on digital systems and legacy financial market infrastructure operating on fixed business-day schedules.