A Treasury-supported document aims to transition repo, gilts, and funds onto blockchain within two years, showing favor for permissionless networks that companies like Ripple are developing.
By Shaurya Malwa|Edited by Sheldon Reback Jul 13, 2026, 2:06 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (Ripple Labs)SummaryShow- A report from the U.K. Treasury on wholesale digital markets identifies Ripple as a key player in the effort to transition tokenized repo, fixed income, and funds from pilot projects to operational markets within the next year.
- The document suggests a hybrid approach that incorporates permissioned institutional networks built atop permissionless chains, while also cautioning about unresolved settlement-finality risks associated with public blockchain reorganizations.
- Ripple's acquisition of Hidden Road, a prime broker, and Santander UK’s implementation of Ripple’s technology are highlighted as examples of the merging of traditional finance and cryptocurrency.
Ripple, known for its blockchain-based payment solutions, has been recognized in a Treasury-supported report as a key entity aiding the U.K.'s initiative to integrate wholesale markets onto blockchain, rather than being viewed merely as a cryptocurrency firm.
The report, authored by Chris Woolard, the Treasury's champion for wholesale digital markets, outlines a one-year plan aimed at transitioning tokenized repo, fixed income, and funds from experimental phases to functioning markets, emphasizing the urgency for the U.K. to act before standards and liquidity migrate abroad.
Ripple is included in a task force spearheading this initiative, which Woolard states could yield significant economic advantages for the nation. Potential productivity increases and cost efficiencies could enhance the annual economic output by £33 billion ($44 billion) and raise tax revenues by £14 billion annually over the next ten years.
The proposed hybrid model combines permissionless networks that offer shared liquidity with permissioned institutional networks layered above. The report mentions BlackRock's tokenized money market fund BUIDL, which was issued on Ethereum with a Securitize compliance wrapper, as a reference point.
However, the report also acknowledges a challenge with permissionless chains: a confirmed transaction could theoretically be undone through a chain reorganization, leading to settlement-finality risks that traditional systems do not face.
Despite this, the report asserts that traditional financial institutions and crypto-native businesses are increasingly collaborating.
For instance, it cites Ripple's $1.25 billion acquisition of Hidden Road. Hidden Road, now operating as Ripple Prime, is recognized as a firm holding both an investment-firm license and a cryptoasset registration covering spot and derivatives in forex and digital asset markets from the Financial Conduct Authority.
Santander U.K.'s adoption of Ripple's blockchain for international payments was also noted as a case of white-labeling, where the bank manages customer relations while Ripple's technology facilitates the transactions.
Woolard mentions that both the U.S. and U.K. are aiming for similar timelines regarding stablecoin regulation, with both countries targeting comprehensive frameworks by 2027. In terms of wholesale policy, the U.K. is ahead of the U.S., where the Clarity Act is currently stalled.
While the FCA is already granting approvals to crypto firms under anti-money laundering regulations, the new regulatory framework under the Financial Services and Markets Act (FSMA) will take effect next year.
Applications for FSMA will open on September 30, ahead of an anticipated launch in October 2027.
The report acknowledges that many in the industry perceive U.K. authorization processes to be slower than those in the U.S., where the SEC's December 2025 no-action letter allowed the Depository Trust Company to initiate a three-year tokenization pilot, enabling firms to operate in live environments instead of merely developing for testing.
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Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months
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CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
By CoinDesk Research3 hours agoCEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
Why it matters:
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
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