Tokenisation holds potential to unlock £33bn annual boost to UK economy by 2035
The UK could unlock up to £33bn in additional annual GDP by 2035 by accelerating the adoption of tokenisation, according to new analysis from Barclays and PwC. The report, Rewiring Finance: Tokenisation as a Catalyst for UK Growth, finds that while the economic opportunity is significant, the UK’s window to secure its position as a leader is narrowing and decisive action is needed to avoid falling behind fast moving jurisdictions.
The report concludes that tokenisation is often too narrowly considered as a ‘niche financial technology’, but its true value is that it can enable a fundamental shift in how money, assets and information move.
In practice, this could help simplify everyday financial processes. As money and ownership records move together, transactions will settle faster and with less reliance on multiple systems and manual reconciliation. For households and businesses, this could mean lower-cost payments, wider access to financing and more efficient trade processes, making it easier to trade, invest and grow.
The economic impact comes from reducing frictions across the financial system and helping capital flow more efficiently (both speed and cost) to where it is needed. By improving efficiency across financial services, tokenisation could reinforce the global competitiveness of one of the UK’s flagship sectors. Its wider spillover effects could be more significant still, supporting priorities across the real economy by lowering the cost of trade, improving access to finance, and creating new investment opportunities.
The report highlights a narrow window of opportunity for the UK, as global centres move quickly to establish the infrastructure and rules that will shape the future digital asset landscape. While early adoption is focused on financial markets, it stresses that the bigger prize lies in scaling these capabilities across the wider economy. Capturing this opportunity will require coordinated action from government, regulators and industry.
For tokenisation to work at scale, money, assets and data will need to move safely and easily between different platforms and across borders. The UK is well placed to act as a trusted connector between traditional finance and digital systems, and between domestic and international markets. By taking a leading role, the UK could support market growth, attract investment and build a strong competitive advantage.
Matt Hammerstein, CEO of Barclays UK Corporate Bank, said: “Tokenisation is moving from theory to real-world application. Done well, it can improve how capital flows through the economy, supporting investment, productivity and growth. This report shows why it should be treated as a strategic priority for UK competitiveness, with game changing benefits for businesses, households and the wider economy.”
James Moseley, financial services partner and digital assets lead at PwC UK, said: “The UK has a proud history as a pioneer in financial markets and in technological innovation. We’re now facing the next frontier of finance and must rise to the occasion. Leading on the tokenisation of markets critical to the UK has huge potential benefit for the economy, businesses large and small, and ultimately the way people transact, borrow, save, innovate and grow.”
Barclays and PwC set out five policy priorities for the UK, including setting a clear strategy, focusing on key use cases, building interoperable systems, supporting innovation, and linking tokenisation to wider growth goals.