BlockBeats News, May 20th, Deputy Governor of the Bank of England Sarah Breeden stated at the London City Week 2026 conference that tokenization technology can reduce settlement costs, accelerate transaction speed, and promote financial market competition, provided that the trust mechanism and interoperability are in place.

Breeden emphasized that although private sector innovations such as tokenized deposits and regulated stablecoins are rapidly developing, central bank money will remain the foundation of the monetary system. She outlined a blueprint for a diverse payment system where, in addition to traditional bank deposits, the public should also be able to use tokenized deposits, regulated stablecoins, and potential retail central bank digital currency (CBDC) for payments. Increased competition in technology and business models will reduce user costs and improve functionality.

Breeden stated that the Bank of England is working with industry, government, and regulatory bodies to build a regulatory framework that supports innovation without compromising financial stability. She positioned tokenization as a "modernization" path for the financial system rather than a comprehensive replacement of existing currency or payment infrastructure.

To support the development of tokenization, the Bank of England also proposed on Monday to extend the operating hours of its core settlement infrastructure (RTGS/CHAPS) to operate nearly 24/7, supporting cross-border payments and securities settlement.

Meanwhile, the Bank of England and the Financial Conduct Authority (FCA) have jointly released an asset tokenization blueprint and launched a consultation aimed at establishing a unified framework for tokenization applications in the wholesale market.