UK Treasury report on tokenization cites Ripple as convergence model
A UK Treasury report identifies Ripple as a key model for the convergence of traditional finance and digital assets. The report outlines a plan to transition tokenized financial instruments to live markets while highlighting the economic potential of blockchain integration.
Why it matters
Government recognition of blockchain technology for wholesale finance signals a shift toward institutional adoption and regulatory clarity for digital assets.
The report from Chris Woolard, the Treasury's wholesale digital markets champion, lays out a 12-month plan to move tokenized repo, fixed income and funds from sandbox to live markets, positioning the effort as a race the U.K. loses if standards and liquidity settle offshore first.
Ripple is part of a task force driving the process, which, Woolard said in the report, could provide a sizable economic benefit to the country. Productivity gains and cost efficiencies could boost annual economic output by 33 billion pounds ($44 billion) and increase the tax take by 14 billion pounds a year within a decade.
Woolard's team proposed a hybrid model of permissionless networks providing common liquidity with permissioned institutional networks built on top. The report cited BlackRock's tokenized money market fund BUIDL, issued on Ethereum with a Securitize compliance wrapper, as an example.
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