The International Swaps and Derivatives Association (ISDA) and Global Digital Finance (GDF) submitted a joint response to the FCA and Bank of England’s Call for Input on the Future of Tokenisation. The response strongly supports the UK’s vision for tokenisation and highlights the significant opportunities that distributed ledger technology presents for wholesale financial markets.
The submission outlines how tokenisation can improve collateral mobility, reduce counterparty and settlement risk, enhance liquidity management, and increase capital efficiency through near-instantaneous settlement and programmable collateral. It also emphasises the importance of maintaining legal certainty, operational resilience, and existing prudential safeguards while enabling innovation.
ISDA and GDF encourage regulators to build upon existing regulatory frameworks rather than introducing parallel regimes for tokenised assets, promote interoperability and international regulatory consistency, and provide greater clarity around the treatment of tokenised collateral and securities. The response also highlights the role of tokenised money market funds and other eligible assets in improving collateral management and recommends that future policy prioritise both primary issuance and the development of robust secondary markets.
Overall, the associations support a technology-neutral, risk-based regulatory approach that enables the UK to remain a global leader in the development of tokenised financial markets.
Submitted:
03/06/2026