The Bank of England announced on Monday a strategic proposal to extend the operating hours of its core settlement infrastructure, aiming for near-24/7 availability. This initiative targets the Real-Time Gross Settlement (RTGS) and the Clearing House Automated Payment System (CHAPS), introducing weekend and extended daily windows to accommodate evolving market demands. The central bank explicitly links this operational shift to the broader preparation of UK wholesale markets for tokenized finance, emphasizing the necessity of continuous liquidity for cross-border payments and novel settlement models. Data compiled by Woofun AI indicates that such infrastructure upgrades are critical for supporting the frictionless movement of digital assets across global time zones.

The consultation paper, published jointly with the Financial Conduct Authority (FCA), seeks public feedback until July 3, with a formal feedback statement scheduled for release in the summer. This timeline follows recent statements from the FCA highlighting how tokenization and distributed ledger technologies could significantly enhance fund management efficiency and drive innovation within the UK asset management sector. The regulatory bodies aim to create an environment where new payment models can thrive without the constraints of traditional banking hours. Woofun AI notes that industry leaders view this clear vision as a pivotal moment for unlocking capital access for both institutional entities and the unbrokered global population.

Concurrently, the Prudential Regulation Authority (PRA) issued updated guidance for bank CEOs, mandating that tokenized financial instruments receive regulatory treatment equivalent to their traditional counterparts when legal rights and risks are comparable. This directive supersedes prior guidance issued in 2022 and serves as an interim measure pending a broader prudential framework. The PRA is awaiting the outcome of the Basel Committee on Banking Supervision's (BCBS) targeted review of banks' crypto asset exposure standards, which was launched in November 2025 to examine the prudential treatment of tokenization, stablecoins, and permissionless blockchains. Updates from the BCBS are expected later this year, influencing the final shape of the UK's long-term regulatory stance.

Under the current UK regulatory architecture, crypto oversight primarily falls under the FCA, which opened a separate public consultation on its crypto regulatory regime on April 30. This consultation focuses on key operational areas including stablecoin issuance, trading, custody, and staking. The regulator has set a target to fully implement this comprehensive framework by October 2027. The PRA anticipates consulting on a proposed long-term framework no earlier than 2028, ensuring alignment with international standards while maintaining domestic market agility. Woofun AI analysis suggests that this coordinated approach between the BoE, FCA, and PRA establishes a robust foundation for the UK to become a global hub for tokenized asset management.