- Ripple joined HM Treasury’s taskforce to help develop tokenized wholesale markets, digital gilts, and repo infrastructure.
- The UK aims to test live tokenized repo transactions and issue its first digital gilt by early 2027.
- The strategy projects tokenized finance could add £33 billion annually to the UK economy by 2035.
Ripple has joined HM Treasury’s Wholesale Digital Markets Taskforce as the U.K. advances a strategy to expand tokenized wholesale finance. The Treasury-backed initiative, led by Wholesale Digital Markets Champion Chris Woolard, outlines a 12-month plan covering tokenized repo, funds, and digital gilts. Ripple said on-chain financial instruments already operate beyond pilot programs and offer faster, lower-cost alternatives to traditional systems.
Taskforce Sets Digital Market Priorities
According to Ripple, the U.K. has the capital markets and regulatory framework to support tokenized wholesale markets. The company said broader adoption could contribute up to £33 billion in annual economic output by 2035.
The strategy also estimates annual tax revenue could increase by £14 billion by 2035. Those projections depend on adoption, regulation, and the U.K.’s share of the global tokenized asset market.
Chris Woolard’s taskforce includes 54 firms from banking, digital assets, and market infrastructure. Members include BlackRock, Goldman Sachs, JPMorgan, Morgan Stanley, Coinbase, Circle, Wintermute, and Ripple.
Over the next year, participants will work on secondary markets, tokenized collateral, and the proposed UK Digital Gilt instrument, known as DIGIT.
Repo Trial And Digital Gilts Move Forward
The first major focus centers on tokenized repo transactions. The taskforce plans to complete testing and, where possible, conduct a live end-to-end repo transaction by spring 2027.
In addition, Woolard proposed issuing the first digital gilt by early 2027. The report also asks regulators to clarify whether tokenized government bonds qualify as collateral within wholesale markets.
Meanwhile, the Financial Conduct Authority and Bank of England continue working with 16 firms through the Digital Securities Sandbox. The program covers live issuance and settlement of tokenized bonds, equities, and fund units.
Report Highlights Ripple’s Existing Role
The Treasury-backed report cited Ripple as an example of growing links between traditional finance and digital assets. It referenced Ripple’s acquisition of Hidden Road, now Ripple Prime, and Santander U.K.’s use of Ripple’s blockchain for cross-border payments.
According to Ripple, tokenized real-world assets on the XRP Ledger increased from $150 million to $4 billion within one year. The company added that more than 500 products now operate on XRPL, while JMWH and the Ondo Short-Term Government Bond Fund account for nearly $2.5 billion in value.
