🔥 54 UK institutions form tokenization task force, RWA network effect competition begins
The UK Treasury has officially established the Wholesale Digital Markets Tokenization Task Force today, with 54 institutions including BlackRock, Goldman Sachs, and JPMorgan joining. Over the next year, the group will drive the deployment of tokenized repurchase agreements and other applications. The report estimates that the tokenized RWA market could reach $8.8 trillion by 2035, potentially generating £33 billion in annual economic output for the UK.
A key signal is the UK Treasury’s direct involvement, coordinating 54 top institutions through a task force with the goal of issuing the first digital gilt bond by early 2027. Tokenization has moved from “experimentation” into the “infrastructure race” phase.
Task force chair Chris Woolard put it bluntly: global tokenization is a “network effect competition.” Whoever builds interoperable on-chain financial infrastructure first will attract liquidity, reduce settlement costs, and lock in institutional users. The UK is pursuing a dual-engine approach—“regulation plus infrastructure”—establishing rules first, then laying the tracks.
But risks remain. The task force includes both traditional giants like BlackRock and crypto-native firms. Conflicting interests are inevitable: issuers want control over token standards, exchanges aim to dominate liquidity, and banks are focused on settlement. Cross-chain interoperability, regulatory boundaries, and the roles of stablecoins and central bank digital currencies—all remain unresolved challenges.
For the crypto market, the UK’s move signals that RWA is no longer just a “narrative,” but real infrastructure development. The on-chain tokenization of bonds, repurchase agreements, and funds will bring traditional finance liquidity on-chain—but may also squeeze the survival space of existing DeFi protocols. Once network effects take hold, the cost for latecomers will rise sharply.
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