Bank of England and FCA plan to extend settlement system opening hours to support tokenized markets
2026-05-20 10:34:53
The Bank of England, in conjunction with the Financial Conduct Authority (FCA), announced plans to extend the hours of operation of key settlement systems such as Real-Time Gross Settlement (RTGS) and Clearing House Automated Payment System (CHAPS) to support the development of tokenized financial markets. ([bankofengland.co.uk](https://www.bankofengland.co.uk/news/2026/may/fca-and-boe-set-out-shared-vision-for-tokenisation-in-uk-wholesale-markets?utm_source=openai))
Tokenization, which is the process of creating digital analogues of real assets such as stocks, bonds or currencies on digital registers, has the potential to significantly improve the efficiency of wholesale markets. It can speed up securities issuance, asset management and settlement processes, reducing costs and increasing the resilience of the financial system.
Regulators have noted that firms need more clarity on regulation and infrastructure as tokenization grows. In response, the Bank of England and the FCA have presented a joint vision covering key aspects including prudential regulation, the use of tokenized collateral and settlement instruments. ([bankofengland.co.uk](https://www.bankofengland.co.uk/news/2026/may/fca-and-boe-set-out-shared-vision-for-tokenisation-in-uk-wholesale-markets?utm_source=openai))
As part of this vision, the Bank of England has proposed a phased extension of RTGS and CHAPS opening hours, including weekend opening and an extension of daily opening hours. This will support cross-border payments and new settlement models as tokenization evolves. ([bankofengland.co.uk](https://www.bankofengland.co.uk/news/2026/may/fca-and-boe-set-out-shared-vision-for-tokenisation-in-uk-wholesale-markets?utm_source=openai))
The FCA is also taking steps to support tokenization in the UK, including considering possible changes to the application of the Customer Asset Safeguarding Rules (CASS) in light of feedback from the industry. The FCA recently published a policy statement to promote fund tokenization. ([bankofengland.co.uk](https://www.bankofengland.co.uk/news/2026/may/fca-and-boe-set-out-shared-vision-for-tokenisation-in-uk-wholesale-markets?utm_source=openai))
These initiatives are part of the UK's broader digital strategy to ensure the country leads the way in financial technology and adapts to the rapidly changing landscape of digital assets.
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Bank of England and FCA plan to extend settlement system opening hours to support tokenized markets
20.5.2026
The Bank of England and the FCA plan to extend the opening hours of settlement systems to support tokenized finance.
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