A UK taskforce of 54 financial institutions including Blackrock, JPMorgan, and Circle will pilot tokenized repo transactions as the first live blockchain use case under a wholesale digital markets roadmap. The initiative, led by the UK's Wholesale Digital Markets Champion Chris Woolard, targets tokenized wholesale finance markets with an estimated annual economic benefit of up to $44 billion by 2035. The taskforce was formed to develop practical blockchain-based use cases across UK financial markets, addressing settlement speed, collateral movement, and liquidity in wholesale operations.
The 54-firm group includes Goldman Sachs, HSBC, Morgan Stanley, UBS, Barclays, Citi, State Street, Coinbase, Ripple, and Wintermute. Woolard's first report to the Chancellor sets out a roadmap for tokenized wholesale markets.
Taskforce Targets Tokenized Repo as First Implementation
The taskforce will spend the next year developing practical use cases across UK financial markets. Its first focus is an end-to-end tokenized repo transaction, where securities are exchanged for cash and later repurchased in short-term funding markets.
The report frames repo as a logical starting point because collateral movement, settlement speed, and liquidity are central to wholesale market efficiency. The taskforce plans to set up action groups across nine areas, with an orchestration group coordinating the repo use case on blockchain. The work will include interoperability and cross-border testing.
The roadmap also calls for tokenization use cases in fixed income and uncleared over-the-counter derivatives. It recommends building on the UK's Digital Gilt Instrument, known as DIGIT, with an initial pilot issuance no later than the first quarter of 2027.
UK Projects $44 Billion Annual Economic Output by 2035
The report estimates tokenized real-world assets could reach $88 trillion by 2035, compared with about $3 trillion for today's crypto and stablecoin markets. For the UK, the potential benefit is estimated at up to $44 billion in additional annual economic output and $18.7 billion in annual tax revenue by 2035.
The report warns that without a clear national roadmap, standards, infrastructure, and liquidity could develop offshore, weakening the UK's position as a global financial center. It notes that tokenized assets represented only 0.01% of investable assets in 2025, but grew 300% that year.
The UK is attempting to integrate blockchain infrastructure into repo, collateral, and settlement systems where the largest pools of institutional liquidity already operate.
FAQ
What is the UK taskforce's first tokenization use case?
The taskforce will pilot an end-to-end tokenized repo transaction as its first live blockchain use case, focusing on collateral movement, settlement speed, and liquidity in wholesale markets.
How much economic benefit does the UK project from tokenization by 2035?
The UK estimates tokenized wholesale markets could generate up to $44 billion in additional annual economic output and $18.7 billion in annual tax revenue by 2035.
