US and UK Treasuries Propose Coordinated Tokenization and Stablecoin Rules, Report Says Tokenization Could Boost UK Annual Economic Output by $44 Billion

Odaily Planet Daily News The U.S. Department of the Treasury and the UK Treasury have issued recommendations from the Transatlantic Future Markets Working Group, covering stablecoin activities and tokenized finance. Both sides recommend that relevant agencies consider establishing private-sector-led groups to test cross-border use cases for tokenized assets, and that U.S. financial institutions work with the Bank of England to determine a common approach to regulating tokenized assets. The US and UK also issued a joint statement on stablecoins, stating that both sides aim to promote regulatory coordination and establish a cross-border dynamic stablecoin market, adding that stablecoins should be fully backed by high-quality liquid assets at a minimum 1:1 ratio. Additionally, according to an industry working group report supported by the UK government, if the UK becomes a leading jurisdiction for tokenization, tokenization expands globally, and domestic adoption rates rise, tokenization could increase the UK's annual economic output by up to $44 billion by 2035. (Cointelegraph).