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UK regulators seek feedback on tokenised wholesale markets

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KAREN JOY BACUDO

Finance Editor

The Financial Conduct Authority and the Bank of England have set out a shared vision for tokenisation in UK wholesale markets. They are seeking industry feedback on regulation and market infrastructure.

The aim is to give financial firms a clearer direction on how tokenised assets and distributed ledger technology could develop in UK wholesale finance. Firms have asked for greater certainty as tokenisation expands into areas such as securities issuance, collateral and settlement.

Tokenisation is the digital representation of a real-world asset on a digital ledger in wholesale markets, such as shares, bonds, and units of currency. Policymakers say the model could reshape how assets are issued, traded and settled.

The joint approach addresses areas where market participants have sought clearer guidance, including prudential treatment, tokenised collateral and settlement instruments. The consultation also asks for views on the regulatory and infrastructure principles that should guide the development of tokenised wholesale markets in the UK.

Officials are seeking to support a broader shift from experimentation to practical deployment. Feedback from firms will help shape later policy work and a joint roadmap for digital wholesale markets.

This sits alongside a wider package of measures from the Bank of England and the Prudential Regulation Authority. The Bank has launched a consultation on extending RTGS and CHAPS settlement hours towards near round-the-clock operation through a phased model, including weekends and longer daily hours, subject to industry readiness.

Longer settlement windows would support cross-border payments and newer payment and settlement models as tokenisation develops. The Prudential Regulation Authority has also issued updated guidance to bank chief executives on the prudential treatment of tokenised asset exposures, and on developments involving deposits, e-money and stablecoins.

The guidance reflects recent market changes and reiterates supervisory expectations on risk management and compliance. The FCA will also consider whether its approach to client asset rules should change in response to industry feedback.

Industry shift

The latest position reflects a broader regulatory effort to set clearer boundaries for the use of distributed ledger technology in mainstream financial markets. Rather than focusing only on crypto assets, the work centres on established wholesale market functions and on how existing financial instruments could be represented and processed in digital form.

The Bank and the FCA are already working with 16 firms through the Digital Securities Sandbox on the live issuance and settlement of tokenised assets. The sandbox has become a test bed for assessing how market infrastructure, settlement processes and regulation might operate if tokenised instruments move into wider use.

The Bank is also developing arrangements that would allow tokenised equivalents of assets already eligible as collateral to be used at central counterparties and in its own operations. That work is linked to broader official plans for a pilot issuance of a digital gilt by HM Treasury.

“Tokenisation has the potential to transform wholesale markets – reshaping how assets are issued, traded and settled. We want to support firms in adopting this technology to lower costs, reduce risk and unlock new services, and our partnership with the Bank of England will ensure a common approach across all parts of wholesale markets. Today we are setting out the principles of a shared long-term vision to give industry the clarity it needs to engage, invest and innovate with confidence. UK markets have always embraced new technology, and that will be central to ensuring the UK remains at the forefront of global wholesale markets,” Simon Walls, Executive Director of Markets at the FCA, said.

Policy direction

The Bank has framed the next phase as implementation rather than pilot activity alone. Its work with the FCA and the government has focused on how tokenisation can be introduced into regulated markets without undermining financial stability.

“The Bank and FCA have done a huge amount to enable the responsible adoption of tokenisation in retail and wholesale finance in the UK, working with the government and the industry. The task now is for public and private sectors together to build on these strong foundations, moving from pilots to production to support financial stability and sustainable growth,” Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, said.

For UK authorities, the central question is no longer whether tokenisation should be explored, but how existing market rules, payment systems and supervisory standards should adapt if digital representations of conventional assets become more common in wholesale finance. The consultation asks firms where the current framework supports that transition and where it may constrain the safe use of the technology.

The outcome is likely to shape the next stage of policy for digital wholesale markets, including regulation, settlement design and the treatment of tokenised assets within the wider financial system.



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Mouse droppings found in Oxford city Chinese restaurant

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Ten Seconds Yunnan Rice Noodle in New Inn Hall Street was inspected by Oxford City Council on May 26.

Inspectors subsequently handed the Chinese restaurant a rating of two out of five, meaning “improvement necessary”.

According to the report, received by the Oxford Mail after a Freedom of Information request submission, officers identified a series of concerns, including evidence of mouse activity.

The report states that mouse droppings were found throughout the business in two food storage rooms and the bar area.

In one of the storage areas, mouse activity was present where noodles were kept in plastic carrier bags and potatoes and onion were left in the open.

“Historic” mouse droppings at Ten Seconds Yunnan Rice Noodle (Image: Oxford City Council)

Inspectors said pest-proofing measures were “not great” and identified a hole beneath a sink in the bar area which could potentially allow pests to enter the premises.

In the report, the inspector said: “At the time of the inspection, I observed a number of historic mouse dropping in both the food storage areas.

“The most recent pest control report mentions no mouse activity in any of the food storage areas.

“All areas where food is prepared and stored must be kept clean and capable of being kept clean. This is so that pests are not attracted into your premises and the risk of food being contaminated by dirt is minimised.”

They advised the owner to remove all historic mouse droppings within the food business and continue to identify any issues of pest proofing within a month.

A hole where pests could have entered underneath the sink (Image: Oxford City Council)

The business was instructed to remove the droppings and improve pest-proofing measures where previous temporary work had failed.

Food storage issues were also highlighted during the inspection.

In an “overfilled” fridge, officers found raw chicken stored above ready-to-eat foods, including uncovered beans and spring onions, which could cause cross-contamination leading to food poisoning.

That same fridge, which stored items such as cooked rice, chicken ballotine and prawns, was above the required eight degrees, raising concern about food poisoning.

A large number of food containers were also unlabelled, despite the food looking fresh.

The officer insisted a “robust system for ensuring adequate stock rotation” was implemented and recommended all food be kept in sealed, pest-proof containers.

An overfilled fridge which was measured above safe temperature (Image: Oxford City Council)

No food-safe sanitiser or disinfectant were available on site, only a kitchen cleaner which they said did not provide adequate disinfection.

Despite the concerns, the report noted there had been a “huge improvement” in cleaning standards since the restaurant’s previous inspection.

The business also had a food safety management system in place and a pest control contract with Pure Pest Solutions.

The council has required a range of improvements, with compliance timescales ranging from one week to one month with a revisit inspection planned.





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Oxford startup secures Innovate UK Women in Innovation Award

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Oxford-based Peripear has secured an Innovate UK Women in Innovation Award and a £74,974 grant for its development of a wearable device designed to prevent perineal trauma during labour.

The funding will support continued product development ahead of the company’s planned first-in-human study.

Nina van Schaick, co-founder and COO of Peripear as well as a midwife who trained at Oxford Brookes, said: “I’m sure I wasn’t the only one to see this gap.

“I was incredibly lucky to meet my co-founder, Eviatar Natan, right as my frustration about the lack of translation of evidence into practice had peaked.

“There was a proven mechanism that could reduce injuries occurring in up to 90 per cent of vaginal births, and it was being left out of clinical pathways simply because no standardised tool existed to deliver it.”

Peripear is developing what it describes as the world’s first automated perineal thermotherapy wearable, designed to prevent perineal trauma during childbirth.

A perineal thermotherapy wearable is an emerging medical device.

It is a hands‑free warm compress device used on the perineum during the second stage of labour to reduce severe tearing and episiotomies while improving maternal comfort.

Ms van Schaick added: “I’m a farmer’s granddaughter, and when I started practising over 14 years ago, I asked: where is the tool I need to implement this evidence? I looked around and realised we were still asking clinicians to improvise.

“Peripear is what happens when the person who has lived the problem, both personally and professionally, meets the person who can help her build the solution.”





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UK bike manufacturer on brink of £30m collapse after 139 years

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The company behind bikemaker Raleigh, which was founded 139 years ago and has supplied bikes to the UK’s cycling city of Oxford over the years, has filed to appoint administrators.

Accell UK and Ireland, part of Netherlands-based Accell Group, filed a notice of intention to appoint administrators as the wider group kickstarted insolvency proceedings.

This follows a difficult spell for Nottinghamshire-based Raleigh, which confirmed job cuts in 2024 before reporting a £30m loss in financial accounts published the following year.

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The boss of Accell said it was a “deeply sad and frustrating situation” and that it had “tirelessly explored” every option for the future of the cycling business.

The company bought Raleigh in 2012 for around 100 million US dollars (£74 million), adding to its roster of bike brands throughout Europe including Haibike, Winora and Ghost.

Raleigh was founded in Nottingham in 1887 and was well-known for its Chopper model, which featured extended handlebars and is now part of its “retro” range.

It no longer manufactures bikes from Nottingham, and its head office has moved to Eastwood, Nottinghamshire, while the company has shifted to selling electric bikes under Accell’s ownership.

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Accell went through a restructuring in February, securing additional funding from shareholders and lenders and reducing debts.

The group said it had since “explored every possible avenue” for its future, including discussions with potential buyers, but that it had not been possible to find a solution which means the business can continue operating.

It has therefore initiated insolvency proceedings in the Netherlands.

Accell’s chief executive Jonas Nilsson said: “This is a deeply sad and frustrating situation given all the hard work and everything we have achieved, with the support of shareholders and lenders, to restructure Accell’s operations and finances.

“It is an especially difficult moment for our employees, creditors, customers, suppliers, and partners.

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“Every realistic option for the future of the business has been tirelessly explored, and none have resulted in a solution to continue the Group in its current form.

“Our immediate focus is to support an orderly process, provide clarity wherever possible, and work with the relevant court-appointed administrators to preserve viable activities and employment where circumstances allow.”

At its 1970s height, Raleigh employed more than 13,000 people across the UK, with around 8,000 working at its various Triumph Road sites in Nottingham.

The former factory land later became the University of Nottingham’s Jubilee Campus.

Raleigh subsequently moved its headquarters to Church Street in Eastwood, before leaving that site and relocating to Durban House in 2024.





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