U.K. Tokenized Gilt Project Hinges on On-Chain Payment Infrastructure
JH Kim
Summary
- Industry experts said the success of the U.K. tokenized gilt market depends on resolving on-chain cash settlement.
- They said institutional adoption of digital bonds has stagnated over the past seven years because of inadequate infrastructure.
- Experts said the market needs standardized on-chain payment instruments, pound sterling (GBP)-linked stablecoins, and a clear regulatory framework.
Forecast Trend Report by Period
A U.K. government project to develop tokenized gilts will need expanded on-chain payment infrastructure before the market can gain traction, an analysis showed.
The success of the U.K.'s tokenized gilt market depends on resolving on-chain cash settlement, CoinDesk reported on July 22, citing industry experts. Institutional adoption of digital bonds has stagnated over the past seven years because of inadequate supporting infrastructure.
Experts also said the market needs standardized on-chain payment instruments, pound sterling-linked stablecoins and a clear regulatory framework. Pilot programs alone will not be enough to build a functioning capital market.
JH Kim
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