CryptoSlate
The Bank of England launched a formal consultation on May 18 to extend operating hours across RTGS and CHAPS, laying out a phased path toward near 24/7 settlement that would add a weekend settlement day (most likely Sunday) and selected UK bank holidays by no earlier than 2029, with longer windows on existing days following in 2031. The end-states under review include a 22×6 model and a near-continuous 23.5×7 CHAPS window — close to the always-on architecture that blockchain networks already operate on.
The package is paired with a joint BoE–FCA tokenization vision, a Prudential Regulation Authority letter inviting banks to engage early on wholesale-only stablecoin issuance under a "proportionate approach," and a commitment to a live tokenized-collateral synchronization service at the central bank by 2028. The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, enacted in February, sit underneath it as the statutory backbone, with the new regime coming into force in October 2027.
Why it matters
RTGS and CHAPS have operated without systemic failure for decades, but their weekday, business-hours rhythm is now a structural cost: capital gets trapped overnight, exposures accumulate across weekends, and institutions hold precautionary liquidity buffers to cover the gap. The BoE's synchronization commitment — letting tokenized equivalents of already eligible assets serve as collateral at central counterparties and in its own operations — closes the asset-leg-versus-cash-leg mismatch at exactly the layer where atomic settlement has to land to carry systemic weight.
The PRA's stance on wholesale stablecoins is the other consequential shift. A regulator that historically demanded full ring-fencing for retail stablecoin activity is now signalling that wholesale issuance can be assessed proportionately, which opens a door that has been shut to UK banks for years.
Market impact
The Digital Securities Sandbox, currently running with 16 firms and hosting HM Treasury's DIGIT pilot gilt, is being expanded to include regulated stablecoins in a multi-money system spanning tokenized deposits, stablecoins, and central bank money. The FCA has selected four firms to test stablecoin products across payments, wholesale settlement, and crypto trading, and Revolut is trialling a pound stablecoin with its 12 million UK users inside the cohort sandbox — both feeding into final stablecoin rules expected later in 2026.
Frequently asked questions
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What did the Bank of England announce on May 18?
A formal consultation on extending RTGS and CHAPS operating hours toward near 24/7 settlement, with a weekend settlement day (likely Sunday) and selected UK bank holidays targeted for no earlier than 2029 and longer daily windows following in 2031.
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Why is the tokenized-collateral synchronization service the more consequential piece?
It is targeted for 2028 and lets tokenized equivalents of already eligible assets serve as collateral at central counterparties and in the BoE's own operations, closing the asset-leg-versus-cash-leg mismatch at the central bank layer where atomic settlement has to land to carry systemic weight.
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What did the PRA say about wholesale stablecoins?
The PRA invited banks considering stablecoin issuance exclusively for wholesale customers to engage with supervisors early and signalled a "proportionate approach" to assessing proposals — a notable shift from its prior insistence on full ring-fencing for retail stablecoin activity.
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How does the Digital Securities Sandbox fit into the package?
The BoE and FCA are running the sandbox with 16 firms, hosting HM Treasury's DIGIT pilot digital gilt. It runs through early 2029 with the application window expected to close around March 2027, and is being expanded to include regulated stablecoins as part of a multi-money system.
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What is the timeline for the rest of the UK crypto framework?
The FSMA 2026 (Cryptoassets) Regulations were enacted in February 2026 with the new regime coming into force in October 2027. EMIR guidance on tokenized collateral is due later in 2026, BoE consultation submissions close July 3, and a cross-authority digital wholesale market roadmap is expected before year-end.
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