The Bank of England and Financial Conduct Authority are moving to extend settlement infrastructure operating hours toward near-24/7 availability, signaling institutional readiness for tokenized finance in wholesale markets. The proposal, announced May 18, 2026, represents a coordinated regulatory push to align UK payment systems with the operational demands of blockchain-native capital markets.
Settlement Infrastructure Gets a 24/7 Overhaul
The Bank of England’s Real-Time Gross Settlement (RTGS) system and CHAPS payment rail currently operate on traditional banking hours. Extended settlement infrastructure operating hours would eliminate timing friction that has historically constrained cross-border and after-hours transactions. The move follows interim guidance issued by the Prudential Regulation Authority in 2022 treating tokenized instruments equivalent to traditional equivalents when legal rights and risks are comparable. This regulatory alignment signals the central bank views tokenization not as speculative experimentation but as infrastructure requiring operational redesign.
FCA Consultation Opens Path to Stablecoin Rules
The FCA opened public consultation on April 30, 2026, with a July 3 deadline for feedback on its comprehensive crypto regulatory regime. The consultation covers stablecoin issuance, trading, custody, and staking — the operational layers required for tokenized markets to function at scale. Summer 2026 will see the Bank of England publish feedback on extended settlement hours, while the FCA targets October 2027 for full implementation of its crypto framework. The Prudential Regulation Authority, meanwhile, does not expect to consult on long-term tokenization frameworks until 2028 at the earliest.
International Standards Body Signals Convergence
The Basel Committee on Banking Supervision launched a review of crypto asset exposure standards in November 2025, examining prudential treatment of tokenization, stablecoins, and permissionless blockchains. Updates are expected in 2026. This international alignment matters: UK regulators are not moving in isolation. Coordinated standards across jurisdictions reduce arbitrage incentives and make cross-border tokenized settlement viable. Katie Harries, head of policy for Europe at Coinbase, stated the opportunity extends beyond institutional capital: “The ‘unbrokered’ — the many individuals globally who are not able to participate in capital markets today” stand to gain access through tokenized infrastructure.
Timeline and Implementation Gaps Remain
While regulatory intent is clear, implementation timelines stretch to 2027 and beyond. Specific weekend hours for extended RTGS/CHAPS operation have not been detailed. Cost and technical complexity of upgrades are unaddressed in public statements. The earliest PRA consultation on long-term tokenization frameworks sits at 2028. For institutions betting on 2026-2027 tokenized market launch, regulatory clarity on stablecoin custody and settlement finality will determine viability.
