Building the next generation of market infrastructure
Source: FCA UK ↗ (cross-verified by 2 outlets — full list below)
Nikhil Rathi, chief executive of the UK Financial Conduct Authority, used a dinner hosted by TheCityUK and sponsored by Nasdaq to announce that HSBC Orion has become the first firm approved to provide live Digital Securities Depository (DSD) services, marking a milestone in the evolution of market infrastructure. Speaking from the historic former Midland Bank headquarters, Rathi highlighted the shift from debating the mere feasibility of tokenising assets to assessing how such technology can enhance liquidity, capital formation and settlement speed on a large scale. He underscored the broader relevance of emerging tools—artificial intelligence, distributed ledger technology and wholesale digital payments—stating that they are no longer optional enhancements but essential components for maintaining market integrity, competitiveness and growth, with potential economic gains estimated at £33 billion to UK GDP and £14 billion in annual tax revenues.
Rathi explained that the FCA, together with the Bank of England, has been gathering industry input on tokenisation, stablecoins and crypto‑assets, receiving over 120 responses that reveal a clear demand to move beyond experimental sandboxes toward full‑scale production. Participants urged faster progress from central securities depositories and other market‑infrastructure providers, calling for regulatory forbearance where necessary and a thorough review of tax and accounting treatment for tokenised assets. In response, the regulator plans to issue a joint tokenisation roadmap with the Bank of England, outlining a transition from testing environments to established market infrastructure, while also preparing a consultation on safeguarding rules to ensure clear ownership rights and investor protection in the tokenised ecosystem.
Looking ahead, Rathi stressed that successful adoption will depend as much on industry leadership as on public policy. He noted the role of the UK’s Digital Markets Champion, Chris Woolard, in coordinating sector efforts and highlighted ongoing engagement with bodies such as the Confederation of British Industry to address investor engagement and stewardship concerns. As tokenisation and decentralized finance accelerate the emergence of continuous, potentially 24‑hour markets, traditional exchanges are expected to offer both conventional and novel contracts, including micro‑contracts and digital derivatives. The FCA’s approach will remain purposeful and proportionate, using existing frameworks where effective, intervening only when outcomes demand it, and ensuring that innovation proceeds without compromising investor protection or market integrity.
⚡ Effects Interpreter
🌍World Economymedium impact
What this means for you
- ▶Foreign direct investment decisions can hinge on how this plays out.
- ▶World markets have a habit of reading between the lines of stories like this.
🏙️Local Economylow impact
What this means for you
- ▶Everyday spending habits nearby might shift once the news sinks in.
- ▶Household budgets may notice a slight ripple in due course.
🏦Rates & Banksmedium impact
What this means for you
- ▶The cost of staying safe can trickle through to customers.
- ▶The banking sector tends to close ranks and review its defences after this.
❤️Healthhigh impact
What this means for you
- ▶Local surgeries and clinics could see a short-lived rise in enquiries.
- ▶Worry has a way of spreading faster than the facts sometimes.
💷Wealthmedium impact
What this means for you
- ▶Victims often have more protection than they realise — it's worth asking.
- ▶Scams like this are a reminder to keep an eye on your statements.
🏠Housinglow impact
What this means for you
- ▶Surveyors and valuers tend to factor in wider trends gradually, not overnight.
- ▶A patient seller usually fares better than one rushing to react to headlines.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.