The Bank of England and the Financial Conduct Authority have unveiled a major proposal to modernize Britain’s financial infrastructure by extending settlement operations toward near-24/7 availability, as regulators prepare for the rise of tokenized finance and digital asset markets.
The initiative would expand operating hours for the UK’s Real-Time Gross Settlement (RTGS) system and CHAPS payment network, which currently underpin much of Britain’s wholesale financial system. The proposal is designed to support emerging tokenized payment systems, stablecoins, digital securities, and blockchain-based settlement infrastructure.
UK Regulators Push for “Always-On” Financial Markets
In a consultation paper released on May 18, the Bank of England outlined plans to gradually move RTGS and CHAPS toward near-continuous operations around the end of the decade.
The central bank said rapid innovation in payments and tokenized finance is driving demand for “fast, resilient and always-on payments,” adding that existing financial infrastructure must evolve to remain globally competitive.
Under the proposed roadmap, the Bank of England would first introduce Sunday settlement operations and select bank-holiday settlement windows beginning no earlier than 2029. Additional daily operating-hour extensions could follow from 2031 onward.
The long-term goal could eventually lead to either a “22×7” system operating 22 hours daily across all seven days of the week or a “23.5×7” near-continuous settlement model with only brief maintenance downtime.
Tokenized Finance Driving Infrastructure Changes
The proposals come as UK regulators increasingly position tokenization and distributed ledger technology (DLT) as central components of the future financial system.
In a joint statement, the Bank of England and FCA said tokenization could transform wholesale markets by making securities issuance, asset management, trading, and settlement faster and more efficient.
“Tokenisation has the potential to transform wholesale markets,” said Simon Walls, executive director of markets at the FCA.
The regulators noted that tokenized assets — including digital representations of shares, bonds, deposits, and currencies — may eventually require financial infrastructure capable of operating continuously rather than only during traditional banking hours.
The Bank of England specifically highlighted stablecoins, tokenized deposits, and synchronized settlement systems as key drivers behind the proposed expansion of RTGS and CHAPS operating hours.
Cross-Border Payments and Liquidity Efficiency in Focus
The central bank said extending settlement windows could significantly improve cross-border payments by increasing overlap with other international settlement systems.
Officials also believe the move could improve liquidity management and reduce settlement risk for financial institutions operating in global markets.
The Bank of England stated that longer settlement hours may support “conditional settlement arrangements” and newer blockchain-based financial models that require central bank money settlement outside traditional banking schedules.
Industry analysts say near-24/7 settlement could become increasingly important as tokenized securities markets evolve toward real-time trading and atomic settlement systems.
FCA and Bank of England Seek Industry Feedback
The consultation process forms part of a broader regulatory effort to establish a long-term framework for digital wholesale markets in the United Kingdom.
The FCA and Bank of England are now seeking industry input regarding infrastructure standards, prudential treatment of tokenized assets, settlement models, and interoperability requirements for blockchain-based finance.
The regulators said they want to ensure firms can “engage, invest and innovate with confidence” as tokenization technologies mature.
The Prudential Regulation Authority (PRA), which operates under the Bank of England, also issued updated guidance clarifying that tokenized financial instruments may receive similar prudential treatment to traditional assets when risks and legal rights are equivalent.
UK Aims to Become Global Tokenization Hub
The proposals are part of the UK government’s broader strategy to strengthen London’s position as a leading global center for digital finance and tokenized markets.
British regulators have recently accelerated efforts involving stablecoins, fund tokenization, digital securities testing, and distributed ledger infrastructure. The UK’s Digital Securities Sandbox has already allowed firms to test blockchain-based trading and settlement systems under regulatory supervision.
The FCA also recently finalized policy changes supporting tokenized investment funds, including rules designed to accommodate faster settlement and on-chain fund infrastructure.
Sarah Breeden, deputy governor for financial stability at the Bank of England, said regulators now aim to move “from pilots to production” in tokenized finance.
Global Competition Around Tokenized Markets Intensifies
The UK’s push toward near-24/7 settlement mirrors growing international competition among financial centers seeking leadership in tokenized finance and digital asset infrastructure.
Central banks and regulators in the United States, European Union, Singapore, Hong Kong, and the United Arab Emirates have all expanded research and pilot programs involving tokenized assets, stablecoins, and blockchain-based settlement systems.
The Bank of England acknowledged that several other major central banks are already exploring extended settlement hours and continuous payment infrastructure.
Analysts say the transition toward always-on financial infrastructure could eventually reshape how wholesale markets operate globally, particularly as tokenized assets blur the lines between traditional finance and blockchain-based systems.
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