The U.S. Department of the Treasury and the U.K. Treasury released four joint recommendations on Tuesday to promote regulatory alignment and cross-border development in digital assets. Issued through the Transatlantic Taskforce for the Markets of the Future, the proposals target stablecoin activities and tokenized finance as part of ongoing bilateral cooperation on financial market innovation.
The recommendations call for financial authorities in both countries to explore shared regulatory approaches for tokenized assets. They also suggest establishing a private-sector group to test cross-border applications of tokenized instruments. On stablecoins, the two governments expressed intent to coordinate rules that support a robust international market while tailoring requirements to achieve consistent outcomes for similar risks.
The statement emphasized the importance of full backing for stablecoins on at least a one-to-one basis with high-quality liquid assets, a stance consistent with recent U.S. legislation. Officials aim to advance financial stability without creating market distortions or hindering competition across borders.
A separate U.K. government-supported industry report estimated that leadership in tokenization could add up to $44 billion to Britain's annual economic output by 2035, assuming global scaling and strong domestic uptake. The report recommended that the U.K. issue tokenized government bonds by the first quarter of 2027 and conduct blockchain-based trials for financial transactions.
The recommendations call for financial authorities in both countries to explore shared regulatory approaches for tokenized assets. They also suggest establishing a private-sector group to test cross-border applications of tokenized instruments. On stablecoins, the two governments expressed intent to coordinate rules that support a robust international market while tailoring requirements to achieve consistent outcomes for similar risks.
The statement emphasized the importance of full backing for stablecoins on at least a one-to-one basis with high-quality liquid assets, a stance consistent with recent U.S. legislation. Officials aim to advance financial stability without creating market distortions or hindering competition across borders.
A separate U.K. government-supported industry report estimated that leadership in tokenization could add up to $44 billion to Britain's annual economic output by 2035, assuming global scaling and strong domestic uptake. The report recommended that the U.K. issue tokenized government bonds by the first quarter of 2027 and conduct blockchain-based trials for financial transactions.