Bank of England Deputy Governor Breeden: Tokenization Can Reduce Costs, Accelerate Settlement at City Week 2026

GateNews
According to Bank of England Deputy Governor Sarah Breeden at London City Week 2026, tokenization technology can reduce settlement costs, accelerate transaction speed, and promote financial market competition, provided trust mechanisms and interoperability are in place. Breeden emphasized that central bank money will remain the cornerstone of the monetary system despite private sector innovations like tokenized deposits and regulated stablecoins. She outlined a multi-layer payment ecosystem where the public can use traditional bank deposits, tokenized deposits, regulated stablecoins, and potentially retail central bank digital currency (CBDC). On Monday, the Bank of England also proposed extending its core settlement infrastructure (RTGS/CHAPS) to near 24/7 operations to support cross-border payments and securities settlement. The central bank and Financial Conduct Authority jointly released an asset tokenization blueprint for wholesale markets.
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