British Financial and Trade Association collaborates with banks to successfully trial CBDC, taking next step towards security tokenization

The British Financial and Trade Association recently issued a statement stating that its experiment in tokenization and CBDC business, The Regulated Liability Network, has received generally positive feedback. He also stated that the country’s regulatory framework is very flexible and can support such innovative financial infrastructure. The next step will be to enter the field of securities tokenization.

Eleven banks jointly participated in the CBDC project, which was generally well received

"The Regulated Liability Network is a financial market infrastructure that can provide new payment and settlement capabilities, including tokenization and programmability," the UK Finance and Trade Association said in a statement.

The country’s financial trade association and partner banks have completed the experimental phase of tokenization and central bank digital currency (CBDC) platforms and are looking to work with regulators and more partners to develop payment networks based on blockchain technology. . The initiative, which involves 11 banks including Barclays, Citibank UK, HSBC and NatWest, concluded that such a platform could help create economic value and enable new capabilities such as programmable payments .

The British political and business community generally supports the promotion of securities tokenization

After receiving generally positive reviews, BFI’s next step will be to experiment with the tokenization of securities. Last year UK regulator the Financial Conduct Authority (FCA) expressed support for industry implementation of a report on the tokenization of funds . The newly elected Labor government set a policy goal before the election earlier this year to make the country a center for securities tokenization. More and more platforms and institutions are exploring tokenization to tokenize real-world assets such as stocks and securities.

Peter Left, Head of Programs at The Regulated Liability Network, said: “Through this partnership, we have demonstrated how the platform can support currency and payments development that aligns with the shared goals of the public and private sectors, while also delivering clear and long-term benefits to customers and industry.”

The core business of the platform is to enable tokenization platforms for multiple issuers, such as digital fiat currency CBDC issued by the central bank for institutions, or to securitize tokens and achieve interoperability of all forms of currency.