The world's largest financial institutions, including BlackRock, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, and UBS, have joined forces in a new tokenization working group established with the support of the UK government. A total of 54 companies are participating in the initiative, which will focus on asset digitalization and market standardization.
First Steps: REPO Transactions as an Entry Point
In the initial phase, the group will focus on tokenized REPO transactions—one of the most liquid and structured segments of the financial market. This work is planned for the coming year and, according to UK Treasury estimates, could lay the foundation for large-scale technology adoption. By 2035, tokenized markets are expected to generate up to £33 billion annually for the British economy and up to £14 billion in tax revenue.
Why This Matters: From 0.01% to $88 Trillion
Today, tokenized assets account for only 0.01% of total investment volume, yet their value has grown by 300% over the past year. According to analyst estimates, the market for tokenized real-world assets (RWA) could reach $88 trillion by 2035, far exceeding the current $3 trillion attributed to cryptocurrencies and stablecoins. The UK is already planning to become the first G7 country to issue government debt securities on the blockchain as part of the DIGIT pilot project.
The report's authors emphasize that without a clear national strategy, standards and infrastructure could be shaped abroad, undermining London's role as a global financial center. The speed of adoption is becoming a critical factor—those who act faster will capture liquidity and the right to set the rules of the game.
Structure and Timeline
To achieve these goals, nine specialized areas have been created, four of which will form the core: primary issuance, secondary markets, collateral, and settlement infrastructure. The first practical case will be a full REPO transaction—from start to finish. A separate group will coordinate the work, tasked with ensuring system compatibility and conducting cross-border tests.
Concrete steps are expected from regulators: a priority DIGIT pilot issuance no later than the first quarter of 2027, and readiness from the Bank of England to accept these securities as collateral. Without a reliable payment infrastructure, including tokenized deposits and stablecoins, large-scale tokenization simply will not work.
Expert Opinion: The entry of giants like BlackRock and JPMorgan into the UK tokenization group is not just a formal step but a clear signal to the market: institutional capital is ready to move from pilots to a full-fledged market. The first real test of REPO transactions is expected by spring 2027, and this moment will be the litmus test for the entire industry. If the UK manages to establish standards first, it will cement its status as a global leader in digital finance for the long term.