U.S. and UK Treasuries Seek to Coordinate Tokenization and Stablecoin Rules; Report Says Tokenization Could Boost UK Economy by $44 Billion in Annual Output

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 suggest that relevant agencies consider establishing a private sector-led group 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 U.S. and UK have also released a joint statement on stablecoins, stating their intention to promote regulatory coordination to establish a dynamic cross-border stablecoin market. They also indicated that stablecoins should be fully backed by high-quality liquid assets at a minimum 1:1 ratio. Separately, according to a UK government-backed industry working group report, if the UK becomes a leading jurisdiction for tokenization, tokenization expands globally, and domestic adoption rates increase, tokenization could add up to $44 billion to the UK's annual economic output by 2035. (Cointelegraph).