Treasury-backed report targets 12-month timeline for moving repo, fixed income, and funds from pilots
A UK Treasury-backed report released on July 13 places Ripple Labs at the center of efforts to move tokenized repo, fixed income, and funds from sandbox pilots into live markets within 12 months, using a hybrid model that layers permissioned institutional networks on permissionless blockchains.
Chris Woolard, the UK Treasury’s wholesale digital markets champion, said the tokenization strategy “could provide a sizable economic benefit to the country.” The report projects annual economic output gains of 33 billion pounds ($44 billion) within a decade, alongside a 14 billion pound annual tax increase over the same period.
Ripple’s prominence in the strategy reflects its $1.25 billion acquisition of Hidden Road, a prime broker now operating as Ripple Prime. The firm holds both an investment-firm license and cryptoasset registration from the Financial Conduct Authority covering spot and derivatives across forex and digital asset markets. Santander UK already uses Ripple’s blockchain for cross-border payments under a white-label arrangement.
The report cites BlackRock’s tokenized money market fund BUIDL as a working example of the hybrid model. BUIDL is issued on Ethereum with a Securitize compliance wrapper, demonstrating how institutional products can combine public blockchain infrastructure with permissioned compliance layers.
Settlement finality and regulatory alignment
The Treasury report identifies chain reorganizations on public blockchains as an unresolved settlement-finality risk that traditional market infrastructures do not face. Resolving this gap is central to moving tokenized products from controlled environments into live trading.
The FCA’s new authorization regime under the Financial Services and Markets Act launches in October 2027. Applications open on September 30. The report’s 12-month timeline for moving products to live markets aligns with this regulatory window.
The strategy also follows the SEC’s December 2025 no-action letter to the Depository Trust Company, which granted a three-year tokenization pilot allowing firms to launch live products rather than restrict testing to sandbox environments. Both the US and UK are targeting full stablecoin regulation regimes by 2027.
The report does not specify which repo, fixed income, or funds products are prioritized for the transition, nor does it detail the current sandbox pilots underway.
Frequently Asked Questions
What is the timeline for moving tokenized products to live markets in the UK?
A UK Treasury-backed report targets a 12-month timeline for moving tokenized repo, fixed income, and funds from sandbox pilots into live markets.
Why is Ripple central to the UK tokenization strategy?
Ripple's prominence reflects its $1.25 billion acquisition of Hidden Road, now Ripple Prime, and FCA licenses. Santander UK uses Ripple's blockchain for cross-border payments.
What does the report project for the UK economy?
The report projects annual economic output gains of 33 billion pounds ($44 billion) within a decade, alongside a 14 billion pound annual tax increase over the same period.
