The United States and the United Kingdom have outlined a plan to facilitate the movement of tokenized financial products between their markets, signaling that both governments want blockchain-based finance to become a larger part of traditional capital markets.
Released Tuesday by the U.S. Department of the Treasury and the U.K. Treasury, the Transatlantic Future Markets Working Group’s recommendations focus on reducing regulatory frictions that could slow the growth of tokenized securities, stablecoins and other digital assets operating in both countries.
The report presents 10 recommendations covering digital assets and traditional capital markets.
On the digital asset side, governments are proposing to create an industry-led working group to test cross-border tokenization projects, coordinate regulation of tokenized securities, and support the development of cross-border stablecoins. They also want to review global banking standards for cryptoassets and develop policy frameworks that allow stablecoins, tokenized bank deposits and other forms of digital currency to coexist.
The two governments also issued a joint statement supporting cross-border stablecoin activity, saying the private sector will play a central role in the development of digital currency and payment systems.
