Several leading U.S. banks and financial institutions have joined the United Kingdom’s tokenization taskforce.
Asset manager BlackRock (NYSE: $BLK), commercial bank JPMorgan Chase (NYSE: $JPM), and investment banks Goldman Sachs (NYSE: $GS) and Morgan Stanley (NYSE: $MS) have joined the taskforce.
The group will spend the next year working on tokenization use cases across U.K. financial markets.
The taskforce comes as a growing number of countries look to tokenize their financial markets, creating digital representations of stocks and bonds that trade around the clock.
The market for tokenized assets could reach $88 trillion U.S. by 2035, according to the Boston Consulting Group, dwarfing the current crypto and stablecoin market that’s worth $3 trillion U.S.
Other jurisdictions such as the U.S. and the European Union (EU) are also looking at how to integrate tokenization into financial markets.
Advocates say that tokenized assets could lead to productivity gains and cost efficiencies, which could benefit global trading hubs such as London.
U.S. banks have been at the centre of efforts to tokenize stocks and other assets in the U.S.
Bitcoin (CRYPTO: $BTC), the largest cryptocurrency by market capitalization, is trading at $62,500 U.S. on July 13.
