UK proposes near-24/7 settlement to prepare markets for tokenization
The Bank of England on Monday proposed extending operating hours for its core settlement infrastructure toward near-24/7 availability, part of a broader push with the Financial Conduct Authority (FCA) to prepare UK wholesale markets for tokenized finance. The proposal seeks to add weekend and extended daily operating hours to the central banks settlement mechanism, Real-Time Gross Settlement (RTGS), and the Clearing House Automated Payment System (CHAPS). The Bank of England said the expanded operating hours would support cross-border payments and new payment and settlement models as tokenization develops. The consultation will support cross-border payments and new payment and settlement models based on tokenization developments, according to the joint letter published on Monday. The BoE is seeking public feedback on the consultation paper until July 3 and plans to publish a feedback statement in the summer. It comes weeks after the FCA said that tokenization and distributed ledger technologies could make fund management more efficient and support the innovation of the UK asset management sector. Call for input on the future of tokenization in UK wholesale markets. Source: FCA Fantastic to see the UK setting out a clear vision for tokenization in wholesale markets, Katie Harries, head of policy for Europe at Coinbase, told Cointelegraph. The opportunity is huge