Wall Street Titans Unite: BlackRock and JPMorgan Join UK Tokenization Working Group
A historic alliance of the world's largest financial institutions is forming in the UK. BlackRock, JPMorgan, Goldman Sachs, HSBC, Morgan Stanley, and UBS — a total of 54 companies — have joined forces to develop standards for asset tokenization. This initiative, supported by the British government, marks a transition from experimental pilots to full-fledged market infrastructure.
In the first phase, the group will focus on tokenized repo transactions — one of the most liquid segments of the financial market. According to UK Treasury estimates, by 2035, tokenized markets could contribute up to £33 billion in additional GDP and £14 billion in tax revenue annually. These are not just numbers — this is a strategic priority for maintaining London's status as a global financial center.
Market Scale and Potential
According to the report, the UK processes over £4 trillion in securities daily, remaining the global leader in wholesale capital markets. Meanwhile, tokenized assets accounted for only 0.01% of investment assets in 2025 — but their value grew by 300% over the year. Analysts predict that 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 key takeaway from the report is that delay is deadly. Without a clear national strategy, standards and infrastructure will move abroad, undermining the country's role as an open global financial center. The authors emphasize: in tokenization, the winner is the one who acts faster. Pioneer countries will capture the lion's share of activity, liquidity, and the right to set standards.
Structure and Roadmap
To achieve its goals, the group is creating nine specialized areas, four of which will form the core of the work, covering the entire transaction chain: primary issuance, secondary markets, collateral, and settlement infrastructure. The first practical example chosen is a full repo transaction — from start to finish. According to experts, this will serve as the foundation for scaling tokenization in secondary markets and deliver the greatest efficiency gains.
Concrete steps are expected from the government and regulators: a priority pilot issuance of government debt securities on the blockchain (the DIGIT project) no later than the first quarter of 2027, and readiness from the Bank of England to accept these securities as collateral. The importance of payment infrastructure is separately emphasized: without a reliable system, including tokenized deposits and stablecoins, large-scale tokenization simply will not work.
My expert conclusion: This is not just another working group — it is a consolidation of the interests of global financial elites. The participation of BlackRock and JPMorgan, which are already actively testing their own tokenization projects, indicates that the technology has moved from the stage of an "interesting experiment" to the stage of "strategic necessity." The tokenized repo market is an ideal testing ground for mechanisms that will later be applied to a broader range of assets. The fact that the UK is the first among G7 countries to launch government bonds on the blockchain sets the tone for the entire industry. Spring 2027 will be a turning point — the first real test of a repo transaction will show whether the traditional financial system is ready for full-scale tokenization.