The report also highlights a problem with permissionless chains: a confirmed transaction can, in theory, be reversed by a chain reorganization. This introduces final settlement risk that traditional infrastructure does not face.
Nevertheless, according to the report, established companies in traditional finance and crypto-native companies are converging.
As an example, he cites Ripple’s purchase of prime broker Hidden Road for $1.25 billion. Hidden Road, now Ripple Prime, is among companies holding both an investment business license and crypto-asset registration covering spot and derivatives markets in the foreign exchange and digital asset markets with the Financial Conduct Authority.
Santander UK’s use of Ripple’s blockchain for cross-border payments has been cited as an example of white labeling. The bank manages the customer relationship while Ripple’s technology moves the money.
Woolard imposes similar stablecoin regulation deadlines on the US and UK markets, with both aiming for a full regime in 2027. When it comes to wholesale policy, the UK is ahead of the US, where the Clarity Act remains blocked.
While the FCA already licenses crypto companies under money laundering regulations, the regulator’s new regime under the Financial Services and Markets Act (FSMA) will come into force next year.
Applications under the FSMA open on September 30, ahead of a launch date of October 2027.
The report admits that the industry still views authorization in the UK as slower than in the US, where the SEC’s December 2025 no-action letter gave the Depository Trust Company a three-year tokenization pilot that allows companies to go live rather than build a test environment.
