The Evolution of the Tokenised Money and Payments Marketsin the United Kingdom From October 2027
On 23 September 2026 Taurus hosted a private dinner discussion that explored The Evolution of the Tokenised Money and Payments Markets in the United Kingdom From October 2027. That date marks a turning point. On 25 October 2027, the “crypto-asset” regime for the United Kingdom comes into effect, and Stablecoins will be regulated in detail for the first time. They will take their place in a money and payments “eco-system” in which traditional bank deposits, Tokenised Deposits, Stablecoins and, possibly, a Central Bank Digital Currency (CBDC) interact seamlessly without imperilling the “singleness” of money.
Future of Finance Private Dinner with Taurus 1 Future of Finance Private Dinner with Taurus 2
Regulatory clarity will make it easier to issue Stablecoins. Yet the regime is also designed to protect the bank deposits that fund lending to the real economy. Stablecoins are therefore unlikely to flourish in the domestic market, where Tokenised Deposits are likely to prevail, even though they cannot yet settle payments between customers of different banks.
This does not mean established financial institutions can afford to do nothing. The age of the bank account is ending and the age of the digital wallet is beginning, putting their payments, foreign exchange, money and capital markets businesses at risk. There are opportunities as well as threats. London could become an offshore centre for the issuance of US dollar Stablecoins, while banks could turn their comparatively low appetite for risk into an advantage in underwriting programmable money.
But many institutions are still assessing whether there is a commercial case for investment. They either join collective endeavours, build proprietary platforms or do nothing. The result is fragmentation, both within and between institutions.
The discussion explored how tokenised money and payments can be made interoperable, and why the answer lies in a division of labour between technology vendors and financial market infrastructures.
This private discussion was moderated by Future of Finance and attended by senior representatives of Tier 1 banks, financial market infrastructures, payment providers and Stablecoin issuers.
This is a summary written by Future of Finance, which is fully responsible for the content. It reflects a range of opinions expressed during the private discussion.
