UK Treasury report on tokenization cites Ripple as convergence model

The report also noted a problem with permissionless chains: a confirmed transaction can, in theory, be reversed by a chain reorganization. That introduces a settlement-finality risk that traditional infrastructures do not encounter.

Nevertheless, the report said, established firms in traditional finance and crypto-native companies are converging.

As one example, it cited Ripple's $1.25 billion purchase of prime broker Hidden Road. Hidden Road, now Ripple Prime, is listed among firms holding both an investment-firm license and cryptoasset registration covering spot and derivatives across forex and digital asset markets from the Financial Conduct Authority.

Santander U.K.'s use of Ripple's blockchain for cross-border payments was named as a white-labeling example. The bank fronts the customer relationship while Ripple's technology moves the money.

Woolard puts the U.S. and U.K. markets on similar timelines for stablecoin regulation, with both targeting full regimes in 2027. For wholesale policy, the U.K. is ahead of the U.S., where the Clarity Act remains stuck.

While the FCA is already authorizing crypto companies under money-laundering regulations, the regulator's new regime under the Financial Services and Markets Act (FSMA) kicks in next year.

Applications under FSMA open on Sept. 30, ahead of an October 2027 launch date.

The report concedes that the industry still sees U.K. authorization as slower than the U.S., where the SEC's December 2025 no-action letter handed the Depository Trust Company a three-year tokenization pilot that lets firms launch live rather than build for a test environment.