The UK government has unveiled plans to accelerate the adoption of tokenised finance by appointing a dedicated “wholesale digital markets champion” to coordinate industry-wide efforts and strengthen the country’s position in next-generation financial systems.
Chris Woolard CBE, a former interim chief executive of the Financial Conduct Authority (FCA), has been selected for the role. He will oversee initiatives aimed at building a more advanced and competitive wholesale financial ecosystem powered by digital assets and tokenisation.
Driving the Shift to Tokenised Markets
Woolard’s appointment stems from the government’s Wholesale Financial Markets Digital Strategy, first outlined in mid-2025. His mandate focuses on uniting stakeholders across the public and private sectors to accelerate the transition from traditional financial processes to digital, blockchain-based systems.
In a statement released alongside the announcement at the Innovate Finance Global Summit (IFGS) 2026 in London, Woolard emphasized the importance of collaboration in delivering the UK’s digital finance ambitions. He noted that stronger engagement between regulators and industry players will be essential in ensuring the country remains globally competitive.
While taking on the government role part-time, Woolard will continue his position at EY, where he has worked since 2021. His prior experience spans leadership roles at the FCA, Ofcom, and within the UK civil service.
Additional Funding for CFIT
Alongside the appointment, the Treasury confirmed an extra £1 million in funding for the Centre for Finance, Innovation and Technology (CFIT). The funding is intended to support the organization through to March 2027 as it transitions toward a self-sustaining financial model.
CFIT, originally launched in 2023 following recommendations from the Fintech Strategic Review, operates as a collaborative platform bringing together industry experts to tackle key financial sector challenges. It has already worked on projects related to open finance and digital verification.
The organization recently published findings aimed at improving access to credit for small and medium-sized enterprises (SMEs), including the development of prototype tools designed to enhance financial transparency and readiness among businesses.
New Regulatory Framework for Digital Payments
The UK government also outlined plans to modernize its payments regulation, introducing a unified framework that will cover both traditional financial systems and emerging digital payment methods.
This framework will include provisions for stablecoins and tokenised deposits, with upcoming consultations expected to gather feedback from industry stakeholders. Authorities aim to regulate stablecoins used in payments while simplifying compliance requirements for firms entering the market, without compromising safeguards.
Additionally, policymakers are exploring how regulations should evolve to accommodate payments conducted by artificial intelligence systems—often referred to as agentic payments—which are rapidly gaining traction.
Expanding Open Banking and FCA Oversight
The reforms will also extend the FCA’s authority over open banking, commonly known in the UK as “pay by bank.” This move is expected to support the development of new commercial payment solutions built on secure data-sharing frameworks.
Open banking allows consumers and businesses to share financial data with authorized providers, enabling more efficient and innovative financial services.
Push for a Strong GBP Stablecoin Market
Economic Secretary to the Treasury Lucy Rigby highlighted the government’s ambition to establish a thriving market for pound-backed stablecoins. She described digital assets as both an opportunity and a necessity for the UK’s financial future.
Stablecoins—cryptocurrencies pegged to stable assets like fiat currencies—offer faster and more efficient payment options compared to traditional systems. However, the UK’s sterling-backed stablecoin market remains in its early stages.
To address this, the FCA has already launched a regulatory sandbox focused on stablecoin innovation, selecting several firms to test use cases ranging from payments to trading and settlement.
Looking Ahead: Digital Gilts and Crypto Regulation
Further developments include plans to issue a blockchain-based government bond, known as a “digital gilt” or DIGIT, which is expected to encourage broader adoption of distributed ledger technology across financial markets.
Meanwhile, new cryptoasset regulations under the Financial Services and Markets Act are set to come into force in October 2027. A regulatory gateway for firms seeking authorization will open between September 2026 and February 2027.
Rigby stressed the government’s commitment to getting the regulatory framework right, balancing innovation with oversight as the UK moves toward a more digitized financial system.
With bold regulatory reforms, targeted funding, and strategic leadership in place, the UK is positioning itself at the forefront of tokenised finance. The success of these initiatives will depend heavily on collaboration between policymakers and industry participants as the financial landscape continues to evolve.
