Tokenisation: Why Now?

For years, tokenisation has presented the potential to make ownership more efficient, accessible and transparent. In simple terms, tokenisation creates a digital representation of an asset on blockchain infrastructure while preserving the underlying ownership rights.

The technology existed, but widespread adoption remained limited because market participants lacked certainty around two fundamental questions: how digital transactions would be settled, and how tokenised assets would be treated under existing securities laws.

That began to change.

In July 2025, the GENIUS Act established America's first comprehensive federal framework for payment stablecoins. The legislation introduced requirements around asset backing, transparency, licensing and compliance, providing institutions with greater confidence that regulated stablecoins could be used as a trusted settlement mechanism.  

In practical terms, this gave the market a clearer path towards on-chain transaction settlement using regulated stablecoins; digital assets designed to maintain a stable value, typically by being backed by cash or short-term government securities and often described as a form of digital cash.

At the same time, the Digital Asset Market Clarity Act (CLARITY Act) advanced through Congress, helping define regulatory oversight for digital assets and providing greater certainty around how tokenised securities would be treated. Crucially, the legislation reinforced a simple but important principle: tokenising a share does not change its legal status. A tokenised equity remains a security subject to the same investor protections, governance requirements and market regulations as a traditional share. 

Together, these developments removed two of the largest barriers to adoption. The GENIUS Act provided the market with a trusted framework for digital settlement, while the CLARITY Act and related regulatory guidance helped demonstrate that tokenisation could operate within existing securities frameworks rather than outside them. The technology had not fundamentally changed; the level of confidence around its use had. 

The impact was quickly reflected across market infrastructure. Regulatory developments were followed by initiatives involving organisations such as Depository Trust & Clearing Corporation, (DTCC) the primary post-trade infrastructure provider for US securities markets and Nasdaq, alongside growing activity from exchanges, brokers and institutional investors exploring tokenised securities. The conversation moved beyond experimentation towards practical implementation within established capital market structures. 

For the UK, the lesson is significant. The most important catalyst for tokenisation is not the technology itself, but the growing recognition that digital ownership can be implemented within existing legal, governance and market frameworks. The experience in the U.S. demonstrates that when regulators provide certainty around settlement, ownership rights and investor protections, institutions become far more willing to innovate and invest. 

The UK is already on this journey. There are a number of initiatives, all under the overarching strategic initiation of the Wholesale Financial Markets Digital Strategy, which aims to support the digitalisation of UK wholesale financial markets. The first report of the Wholesale Digital Markets Champion was released in July 2026 and made clear that tokenised markets are fundamental to the future of UK financial services. The report highlights the interoperability needed within the UK and internationally and the need for a coordinated approach between Government, Authorities and industry to deliver clear legal, regulatory and tax treatment of tokenised and digitally native assets.  

In July 2026, the Bank of England and FCA closed their Call for Input on the future of tokenisation in UK wholesale financial markets, to which EQ responded. The consultation reflects a market that is moving from theory to practical adoption, setting out how infrastructure could support the issuance, trading, settlement, and safekeeping of tokenised securities. It also recognises the potential benefits for UK markets, including greater efficiency, improved liquidity, reduced risk, and enhanced transparency. For issuers, an important part of that future is preserving direct relationships with shareholders, maintaining clear communication and information flows, and upholding strong corporate governance standards. We welcome this direction of travel and look forward to the response statement and roadmap later in 2026.

Whilst we look to the future of tokenised securities, there is recognition that we do still operate in an environment that uses paper. And so, the work of the Dematerialisation Market Action Taskforce (DEMAT) recognises that we first need to remove paper share certificates, and the associated paper-based processes, and this is expected by end 2027. Looking beyond that the future proposals to move all shareholdings into a single, centralised intermediated model need now to be reviewed alongside the tokenisation initiatives to ensure that the UK does not adopt an end-state that is inconsistent with tokenised markets structures. 

Against this backdrop, tokenisation is becoming increasingly relevant. A tokenised share has the potential to support faster settlement, improved visibility of ownership, automated corporate actions and more efficient shareholder servicing. So improved efficiency, transparency and accessibility. 

Over time, it could also enable broader investor participation and more direct engagement between issuers and shareholders. As blockchain infrastructure continues to mature and institutional adoption grows globally, these capabilities are moving from theoretical possibilities towards practical market applications. 

The result is a meaningful inflection point. Regulatory progress in the U.S. has shown how tokenised assets can operate within established financial markets, while ownership modernisation initiatives in the UK are creating a clearer direction for the future of shareholding infrastructure.  

Together, these developments suggest that tokenisation is no longer simply a technology trend. It is increasingly becoming part of a broader discussion about the future of ownership, the evolution of shareholding infrastructure and the development of Wholesale Digital Markets. 

For issuers, digitisation of shareholding frameworks is happening at pace, on a global level.

So how do issuers prepare for a future in which digital ownership models sit alongside traditional market infrastructure? For issuers this creates new opportunities to engage shareholders, streamline administration and improve transparency across the ownership lifecycle.