Several leading U.S. financial institutions—including asset manager BlackRock (BLK), commercial bank JPMorgan Chase (JPM), and investment banks Goldman Sachs (GS) and Morgan Stanley (MS)—have joined the United Kingdom’s government-backed tokenization taskforce.
The newly formed group will spend the next year exploring practical use cases for tokenization across U.K. financial markets. This initiative arrives amid a global push to digitize traditional financial instruments, such as stocks and bonds, by representing them as blockchain-based tokens that can trade 24/7.
According to Boston Consulting Group, the market for tokenized assets could swell to $88 trillion by 2035—vastly surpassing the current $3 trillion valuation of the broader cryptocurrency and stablecoin market.
Other major jurisdictions, including the United States and the European Union, are also advancing regulatory and technological frameworks to integrate tokenization into mainstream finance. Proponents argue that tokenized assets could unlock significant productivity gains and cost efficiencies, potentially reinforcing London’s position as a leading global trading hub.
U.S. banks have been at the forefront of domestic efforts to tokenize equities and other financial instruments. Meanwhile, Bitcoin—the largest cryptocurrency by market capitalization—was trading at $62,500 on July 13.