The banking group UK Finance has expressed its strong support for tokenization and how it could bring several benefits to the United Kingdom.
The trade body of the United Kingdom’s financial sector, UK Finance, has released a report which highlights the importance of securities tokenization. According to the group, securities tokenization could not just have temporary benefits, but it could transform the financial sector.
According to the report, the various benefits included wider access, lower costs, and lower risk. UK Finance and Oliver Wyman, the consulting firm, co-wrote it.
“The UK is at risk of falling behind other financial centers, as digital bond issuance to date has been in other places such as Singapore or Switzerland. […] Our progress is similar to the US, which could quickly leap ahead given its huge financial resources, deep capital markets, and technology know-how,” said the Chair of UK Finance, Bob Wigley.
The report was quick to mention Project Guardian of Singapore and urged the UK government for similar initiatives. The trade group mentioned that the government needed a roadmap for securities tokenization. It mainly focused on three components: interoperability, innovation, and global standards leadership.
The document also stated that the UK was well equipped for the transition, with a slew of global financial centers in the country. It further mentioned how it should further explore distributed ledger technology to derive its benefits.
As the report mentioned, though tokenization is carried out at a small scale now, it has huge potential for the future.