UK to create role to lead tokenization of financial markets

• UK government to launch 'digital markets champion' role
• New task force to oversee dematerialization of paper-based shares
• The country seeks to strengthen its competitiveness in cryptocurrencies and blockchain

The UK government announced Plans are underway to appoint a "digital markets champion," a new role designed to coordinate and drive efforts to tokenize the country's wholesale financial markets. The move is part of a broader strategy to modernize Britain's financial infrastructure using blockchain technology.

According to statements from Economic Secretary to the Treasury Lucy Rigby, the new representative will be responsible for leading collaboration between the government and the private sector in implementing asset tokenization. The goal is to create a more efficient and accessible market environment, bringing the UK closer to major economies already moving toward digitalization of financial systems.

In addition to the appointment, the government also plans to create the Dematerialization Market Action Task Force, which will oversee the country's transition away from paper-based share certificates. This shift aims to eliminate manual processes and accelerate the adoption of technologies that enable instant settlements and greater transaction transparency.

The move comes amid a series of recent moves by the UK to strengthen its position in the cryptocurrency sector. The Financial Conduct Authority (FCA) this week lifted a four-year ban on crypto exchange-traded notes (ETBs), allowing institutional investors and, gradually, the general public, access to these products.

In parallel, the Bank of England is considering introducing exemptions to corporate holding limits on stablecoins, signaling greater openness to financial innovation. These measures reflect the British government's intention to keep the country competitive in the face of regulations and technological advances seen in the United States and other leading jurisdictions.

The creation of the position of "Digital Markets Champion" therefore symbolizes the UK's commitment to building a modern and collaborative regulatory framework capable of integrating tokenization, blockchain, and traditional finance under a single economic ecosystem.