· Event impact
BoE consults on extending RTGS/CHAPS operating hours.
Transmission path
Extended settlement hours and tokenized collateral support could increase liquidity and efficiency in UK financial markets, potentially reducing operational risk and fostering innovation in digital assets.
Market mechanism
Extended settlement hours and tokenized collateral support could increase liquidity and efficiency in UK financial markets, potentially reducing operational risk and fostering innovation in digital assets.
Extended read
The Bank of England initiated a consultation on May 18 to extend the operating hours of its Real-Time Gross Settlement (RTGS) and CHAPS payment systems. This initiative aims for near 24/7 settlement, with a phased rollout starting no earlier than 2029 and full implementation of extended hours by 2031. Key proposals include adding weekend settlement days, specifically Sundays, and potentially certain UK bank holidays, alongside lengthening daily settlement windows. The consultation period concludes on July 3. Beyond payment system hours, the BoE is advancing its digital finance agenda. It plans to launch a live synchronization service for tokenized collateral by 2028, enabling tokenized assets to be used as collateral at central counterparties and in BoE operations. The Digital Securities Sandbox, currently involving 16 firms, will run until early 2029, with applications closing in March 2027. The Prudential Regulation Authority (PRA) supports a proportionate approach to wholesale stablecoins, further signaling regulatory support for tokenized finance.
Exposed assets
GBP · UKX
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