The British Financial Trade Association and banks successfully test CBDC, moving towards tokenization of securities next.

The UK Financial Trade Association recently issued a statement stating that its tokenization and CBDC business experiment, The Regulated Liability Network, has received widespread positive feedback. It also mentioned that the country's regulatory framework is very flexible and can support such innovative financial infrastructure, with the next step being to enter the field of security tokenization.

Eleven Banks Collaborate on CBDC Project, Receives Positive Feedback

The UK Financial Trade Association stated, "The Regulated Liability Network is a financial market infrastructure that can provide new payment and settlement functionalities, including tokenization and programmability."

The UK Financial Trade Association and collaborating banks have completed the experimentation phase of tokenization and central bank digital currency (CBDC) platform, and are seeking to collaborate with regulatory authorities and more partners to develop a blockchain-based payment network. The project involves 11 banks, including Barclays, Citibank UK, HSBC, and National Westminster Bank. Their conclusion is that such a platform helps create economic value and enables new features such as programmable payments.

UK Government and Business Sector Universally Support Security Tokenization Initiative

Following the widespread acclaim, the next step for the UK Financial Association will be to experiment with security tokenization. Last year, the UK Financial Conduct Authority (FCA) expressed support for the industry's implementation of a report on fund tokenization. The newly elected Labour government earlier this year outlined a policy goal to make the country a center for security tokenization. More and more platforms and institutions are exploring tokenization, turning real-world assets such as stocks and securities into tokens.

Peter Left, Director of The Regulated Liability Network project, stated, "Through collaboration, we have demonstrated how the platform supports the development of currencies and payments that align with the common goals of the public and private sectors, while providing clear and long-term benefits for customers and industries."

The core business of the platform is to tokenize platforms from multiple issuers, such as digital fiat currencies issued by central banks for institutions (CBDC), or tokenizing securities, and achieving interoperability of all forms of currency.