UK Wholesale Digital Markets Champion Publishes First Report

On the 13th of July 2026, Chris Woolard, the government’s Wholesale Digital Markets Champion, published his first report to the Chancellor. It is not another glossy strategy document. It is a practical delivery plan for turning tokenisation from pilots into scalable markets because wholesale markets process over £4 trillion of securities a day and form the backbone of the City’s global role. Tokenisation of real-world assets could grow to an $88 trillion market by 2035. The report argues the UK can capture up to £33 billion in extra annual economic output and £14 billion in tax revenue by then if it moves with purpose.

Chris Woolard was appointed Wholesale Digital Markets Champion on 21 April 2026. He is a partner at EY, sits on the firm’s UK board and chairs its Global Regulatory Network. Before that, he spent 25 years in public service. He served on the FCA’s executive committee and board, acted as interim Chief Executive in 2020, and sat on the Bank of England’s Financial Policy Committee and Prudential Regulation Committee. He founded the FCA’s Project Innovate and the original regulatory sandbox. That combination of regulatory experience and private-sector perspective makes him well suited to the role of a bridge between government, regulators and the market.

The City of London Corporation provides secretariat support, working with TheCityUK, UK Finance, the Investment Association and Innovate Finance. The Champion’s terms of reference, published in June 2026, require him to deliver an initial forward look and industry taskforce plan by July 2026 (this report) and a fuller report on DLT adoption and interoperability by July 2027. The role lasts 18 months and is explicitly designed to drive private-sector delivery of the government’s digital strategy while remaining closely coordinated with HM Treasury, the FCA and the Bank of England.

The inaugural report reviews the current innovation landscape, makes the economic case for tokenisation, examines policy questions such as liquidity, settlement finality, permissioned versus permissionless networks and buy-side needs, compares international approaches, and then sets ten priorities with corresponding industry actions and supporting measures from government and the authorities.

Key building blocks already in place receive proper recognition. The Digital Gilt Instrument (DIGIT) pilot aims to make the UK the first G7 country to issue government debt on distributed ledger technology. The Digital Securities Sandbox is described as the most sophisticated public live financial markets facility of its kind. Recent confirmation that sandbox firms can use certain stablecoins as settlement assets is another practical step forward. Dozens of private pilots on tokenised funds, deposits and other instruments provide further evidence that the market is ready to move beyond experiments.

The economic case rests on two external studies cited in the report. Boston Consulting Group projects the global tokenised real-world assets market reaching $88 trillion, or roughly 16 per cent of investable assets, by 2035. A Barclays and PwC analysis estimates the UK could gain up to £33 billion in annual economic output and £14 billion in tax revenue by the same date if it captures a meaningful share of that activity. The report is careful to stress that these gains will not arrive automatically. Network effects mean the first jurisdictions to establish interoperable standards, clear legal treatment and deep secondary-market liquidity will attract disproportionate investment. Delay risks standards and infrastructure developing elsewhere.

Policy analysis in the report is pragmatic. It focuses first on secondary markets, post-trade processes and collateral because these areas deliver the greatest efficiency and capital benefits. Primary issuance, including further DIGIT offerings, is important but secondary-market trading and collateral mobility unlock the wider ecosystem. Legal and regulatory certainty, tax neutrality, financial-crime compliance and resilience are treated as enabling conditions rather than afterthoughts. International interoperability receives sustained attention as the UK cannot build a purely domestic tokenised market and remain a global centre. Cross-border issuance and convergence of standards with other major jurisdictions are therefore explicit priorities.

Delivery machinery is the report’s strongest practical contribution. A cross-industry Taskforce of 54 firms has already been convened. Nine Action Groups will cover priority areas across the market value chain. An Orchestrator Group led by the Champion will coordinate an end-to-end tokenised repo use case, with the aim of live trials by spring 2027. Feedback on the report is invited until 4 September 2026 so the work programme can be refined. This structure turns the high-level strategy of 2025 into accountable workstreams with industry ownership.

The overall policy judgment is positive for three reasons. First, the report correctly identifies that the UK already possesses the legal tradition, liquidity pools and innovation culture needed to lead. Second, it refuses to treat tokenisation as a technology project and instead frames it as a market-structure and competitiveness project. Third, it places delivery responsibility primarily with industry while specifying clear supporting actions for government and regulators, avoiding the trap of heavy central planning.

The path from this report to actual market change is clear and must be followed with urgency. The government should confirm the DIGIT pilot timetable and prepare the Sterling Monetary Framework to accept tokenised collateral. The authorities should accelerate predictable pathways from sandbox to full authorisation. Industry must staff the nine Action Groups promptly, deliver the end-to-end repo use case, and develop open standards that support both domestic and cross-border activity. Tax and legal certainty on the treatment of tokenised assets should be clarified without delay so that private capital can commit.

Source:

1. DLA Piper. “Digital Markets Champion First Report: Establishing a Framework for the Development of a Tokenised Wholesale Financial Markets System in the UK.” DLA Piper Insights, July 21, 2026. https://www.dlapiper.com/en/insights/publications/2026/07/digital-markets-champion-first-report.

2. Ashurst Perkins Coie. “Further, Faster, and Action: UK Wholesale Markets Digital Champion’s Catalytic Plan.” Ashurst Perkins Coie, July 30, 2026. https://www.ashurstperkinscoie.com/en/insights/further-faster-and-action-uk-wholesale-markets-digital-champions-catalytic-plan/.

3. Lovegrove, Simon. “HMT Publishes First Wholesale Digital Markets Champion Report.” Global Regulation Tomorrow (Norton Rose Fulbright), July 14, 2026. https://www.regulationtomorrow.com/2026/07/hmt-publishes-first-wholesale-digital-markets-champion-report/.

4. A&O Shearman. “Wholesale Digital Markets Champion First Report.” A&O Shearman FinReg, July 13, 2026. https://finreg.aoshearman.com/wholesale-digital-markets-champion-first-report. 

5. Thakur, Bee. “From Strategy to Delivery: Turning the UK’s Tokenisation Ambition into Action.” TheCityUK, July 17, 2026. https://www.thecityuk.com/news/from-strategy-to-delivery-turning-the-uks-tokenisation-ambition-into-action/.

6. City of London Corporation. “UK Announces Plan to Scale Tokenisation of Wholesale Financial Markets.” City of London Newsroom, July 13, 2026. https://news.cityoflondon.gov.uk/uk-announces-plan-to-scale-tokenisation-of-wholesale-financial-markets/.

7. Woolard, Christopher. Wholesale Digital Markets Champion First Report: A Report to the Chancellor, Developed with the Sector, on the Future of UK Wholesale Financial Markets. London: HM Treasury, July 13, 2026. https://assets.publishing.service.gov.uk/media/6a510e8b2467584757371d58/Digital_Markets_Champion_Report.pdf