UK Gov Commits to Enabling DLT, Tokenization Work in its Wholesale Strategy

The U.K. government on Tuesday said it intends to enable the wholesale market to identify the best distributed ledger technology (DLT) use cases as well as roll out tokenization solutions.

The country wants DLT – the blockchain technology that underpins crypto – to be utilized across different sectors in wholesale financial markets and create cross market groups “to take forward live activity,” the country’s Treasury said in a policy paper.

A part of the plan includes creating a regulatory framework for crypto technology, something which is already underway as the nation sets out to be a crypto hub. The U.K. published draft legislation for the stablecoin issuers and exchanges in April.

“For instance, on digital wholesale payments the government and regulators are open to proposals that innovate on existing forms of payment, such as tokenised deposits, and also new innovations such as stablecoins,” said Treasury.

The government wants to enable the sector to test solutions that tokenize financial assets and help digitize post trade processes.

Worldwide, RWA tokenization has grown by 380% in just three years and reached $24 billion this month, according to a first-half 2025 report from RedStone, Gauntlet and RWA.xyz.

U.K. regulators will also test using stablecoins – digital tokens pegged to assets – alongside other payment solutions in the new digital securities sandbox.

Read more: FSB Chair Makes Stablecoins a Priority Ahead of G20 Meeting