UK tokenisation plan could add $44 billion to GDP by 2035, report says

Digital gilts set to debut in 2027

London, July 13 2026 – A government‑backed roadmap released today predicts that digitising UK securities could boost annual economic output by up to $44 billion by 2035. The plan aims to launch the nation’s first digital gilt by early 2027, signalling a broader push toward tokenised assets.

The report, compiled by the Treasury in partnership with the Financial Conduct Authority, outlines a phased rollout of blockchain‑based securities. It argues that tokenisation will lower transaction costs, improve market liquidity, and attract global investors seeking modern infrastructure. Officials say the initiative aligns with the UK’s ambition to become a leading fintech hub.

The roadmap earmarks the issuance of a digital gilt – a government bond recorded on a distributed ledger – as the first milestone. The Treasury expects the pilot to run for twelve months, after which a full‑scale programme could follow. „A digital gilt will demonstrate the safety and efficiency of blockchain for sovereign debt,” said Finance Minister Amelia Clarke. Early trials will involve a limited tranche of £500 million, with investors able to trade the token in real time. Analysts estimate that the digital format could shave up to 30 percent off settlement times, translating into lower operational costs for banks and custodians.

Will tokenised assets reshape Britain’s financial markets?

Industry leaders believe the shift could transform the City’s traditional trading models. „Tokenisation opens the door to fractional ownership, enabling smaller investors to access assets previously out of reach,” noted James Patel, chief economist at FinTech Futures. The report projects that by 2030, tokenised securities could represent 12 percent of total UK market volume, rising to 25 percent by 2035. Critics warn that regulatory frameworks must keep pace with rapid innovation to prevent fraud and ensure investor protection. The government has pledged to update AML and KYC rules alongside the rollout.

If the projections hold, the tokenisation drive could inject significant new capital into the economy, spur job creation in tech and compliance, and reinforce the UK’s reputation as a forward‑looking financial centre. However, success will depend on coordinated policy, industry adoption, and public confidence in digital assets. Stakeholders will watch closely as the first digital gilt prepares for launch next year.

Frequently Asked Questions

What is a digital gilt? A digital gilt is a government bond recorded on a blockchain, allowing instant settlement and transparent ownership tracking, unlike traditional paper‑based securities.

How will tokenisation boost GDP? By reducing transaction costs, increasing market liquidity, and attracting foreign investors, tokenised assets can stimulate financial activity that translates into higher economic output.

When will the full tokenisation programme roll out? The pilot digital gilt is slated for early 2027, with a broader rollout of tokenised securities expected to begin in 2028 and expand through the early 2030s.