The world's largest financial institutions, including BlackRock, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, and UBS, have officially joined a new asset tokenization working group established with the support of the UK government. A total of 54 companies will jointly develop standards and infrastructure for the digitalization of financial markets.
First Step — Repo Transactions
In the initial phase, the group will focus on tokenized repo transactions. This segment was chosen deliberately: according to analysts, it will serve as a catalyst for scaling the technology to secondary markets and deliver the greatest efficiency gains. The work is planned for the coming year, with the first full-scale transaction test expected by spring 2027.
Market Potential: From $3 Trillion to $88 Trillion
The scale of upcoming changes is impressive. According to a report from the UK Treasury, the volume of tokenized real-world assets (RWA) could reach $88 trillion by 2035 — a multiple increase from the current $3 trillion attributed to cryptocurrencies and stablecoins. While tokenized assets currently account for only 0.01% of all investment assets, their value has grown by 300% over the past year.
The economic impact for the UK itself is estimated at £33 billion in additional annual GDP and up to £14 billion in tax revenue by 2035.
Speed is Everything
The report's authors emphasize that in the race for tokenization, the winner is the one who acts faster. Countries and companies that first adopt standards and infrastructure will capture the lion's share of liquidity and set the rules of the game. The UK has already made significant progress: it plans to be the first among G7 countries to issue government debt securities on the blockchain as part of the DIGIT pilot project. Key deadlines are no later than the first quarter of 2027, with the Bank of England required to be ready to accept these securities as collateral.
Infrastructure and Payments — The Foundation of Success
To achieve its goals, the group is creating nine specialized areas, four of which will form the core: primary issuance, secondary markets, collateral, and settlement infrastructure. It is particularly emphasized that without reliable payment infrastructure — tokenized deposits and stablecoins — large-scale tokenization simply will not work.
My view as an analyst: The entry of giants like BlackRock and JPMorgan into an official government group is not just news but a clear signal to the market. Tokenization is ceasing to be an experimental niche and is becoming a mainstream direction for institutional finance. The current transition from pilots to a full-fledged market is the most critical stage, which will determine who controls the financial infrastructure of the future. Speed of decision-making is now critical, and the UK is making a serious bid for leadership.