Several leading U.S. banks and financial institutions have joined the United Kingdom’s tokenization taskforce. Asset manager BlackRock, commercial bank JPMorgan Chase, and investment banks Goldman Sachs and Morgan Stanley are now members of the taskforce.
The group will work over the next year on developing tokenization use cases across U.K. financial markets. The taskforce’s formation aligns with a global trend, as countries increasingly look to tokenize their financial markets. This process involves creating digital representations of stocks and bonds that can trade continuously.
The market for tokenized assets is projected to reach $88 trillion U.S. by 2035, according to the Boston Consulting Group. This figure significantly exceeds the current crypto and stablecoin market, which is valued at approximately $3 trillion U.S.
Other jurisdictions, including the U.S. and the European Union, are also exploring the integration of tokenization into their financial systems. Advocates argue that tokenized assets could enhance productivity and cost efficiencies, benefiting major trading hubs like London.
U.S. banks have been instrumental in efforts to tokenize stocks and other assets domestically. As of July 13, Bitcoin, the largest cryptocurrency by market capitalization, is trading at $62,500 U.S.
