Use of Tokenised Assets as Collateral

8th April 2026 | Consultation

Innovate Finance and our Digital Pound Foundation urge policymakers to ensure financial regulatory environment keeps pace with technological developments

As development of the UK's cryptoasset regime progresses, attention is increasingly turning to practical issues related to their use cases and fit into the wider financial landscape.

Adjustments are needed to ensure the regulatory environment keeps pace, especially when it comes to opportunities for financial markets offered by the ability to use tokenised assets as collateral.

With the support of legal firm Travers Smith, this letter analyses the current framework and highlights where changes involving HM Treasury, the FCA and the Bank of England would facilitate greater certainty and support the UK's position as a leading financial services centre for the future.

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Digital Pound Foundation

The Digital Pound Foundation is an Innovate Finance programme dedicated to advancing the UK as a leading global centre for development and adoption of new forms of digital money, including stablecoins, central bank digital currencies (CBDC) and tokenised deposits. It is a member-led forum supporting a diverse, effective and competitive ecosystem for new forms of digital money in the UK and globally and the development of a legal, regulatory and political landscape that enables the UK to embrace opportunities to become a leader in the FinTech space.

The DPF's members include a wide range of firms interested in digital assets, digital money and payments including blockchain applications, payment systems and services, global stablecoin services, GBP stablecoin issuers, challenger banks and advisory firms.

Read the Response Here