On September 12, 2025, a coalition of twelve major UK trade associations took a bold step, urging the British government to make blockchain, stablecoin, and tokenization central pillars of the upcoming UK-US Tech Bridge agreement. Their unified call, sent in a joint letter to Business Secretary Peter Kyle and Financial Secretary Lucy Rigby, points to a rapidly evolving global financial landscape—one where new technologies are fast becoming the bedrock of modern commerce and investment.
According to Cointelegraph, the letter was signed by influential organizations such as the UK Cryptoasset Business Council (UKCBC), UK Finance, and TheCityUK. These groups represent a wide spectrum of the financial world, from traditional banks and insurance companies to fintech and crypto enterprises. Their message is clear: if the UK wants to remain competitive and play a leading role in setting global financial standards, it must act decisively and include digital assets in the Tech Bridge framework with the United States.
The stakes are high. As the letter warns, "Excluding digital assets from the UK-US Tech Bridge will be a missed opportunity. It risks leaving the UK on the sidelines, while other countries—especially in the Middle East and Asia—move forward in setting the standards shaping the future of finance." This sentiment echoes growing concerns that the UK, despite its storied history as a financial powerhouse, could lose its edge if it lags behind in adopting and regulating new financial technologies.
But why the urgency now? The answer, trade groups argue, lies in the transformative potential of blockchain and related technologies. Distributed ledger systems promise not only cheaper and faster payments but also the tokenization of real-world assets—think houses, stocks, or even art—making them tradable online as digital tokens. Stablecoins, which are digital tokens pegged to fiat currencies like the pound or dollar, offer the prospect of near-instant cross-border payments at a fraction of current costs. According to World Bank data cited by the associations, using stablecoins could reduce settlement times from T+2 (two days) to almost instant and slash cross-border transaction fees, which currently average over 6%.
Tokenization, meanwhile, opens up new ways for investors to access markets. It allows for fractional ownership, 24/7 trading, and programmable money flows. Projects like Singapore’s Project Guardian, referenced by Cointelegraph, have already demonstrated the potential for tokenized bonds, funds, and foreign exchange markets. The UK groups believe that by working with the US on shared standards and regulatory sandboxes, both countries could unlock enormous benefits for their financial sectors and consumers alike.
The proposed UK-US Tech Bridge isn’t just about technology for technology’s sake. It’s about building a cross-border framework that enables innovation while ensuring robust oversight. The associations are calling for a unified regulatory sandbox, common stablecoin standards, clear rules for the custody and segregation of digital assets, and mechanisms for joint supervision between UK and US authorities. These steps, they argue, are necessary to protect users, prevent systemic risks, and foster trust in the new digital economy.
Simon Jennings, CEO of the UK Cryptoasset Business Council, laid out a concrete vision: a pilot "stablecoin payment corridor" between the UK and US. This corridor would enable fast, low-cost, and compliant payments across the Atlantic, serving as a testbed for risk controls, anti-money-laundering (AML), and counter-terrorism financing (CFT) compliance, as well as interoperability between different financial systems. If successful, such a corridor could become the backbone of next-generation financial services, supporting everything from global trade to retail payments.
Of course, the path forward is not without obstacles. As Cointelegraph notes, aligning the regulatory frameworks of two major economies is no small feat. In the US, agencies like the SEC, CFTC, and Federal Reserve each have their own approaches to digital assets, while in the UK, the Bank of England, Financial Conduct Authority, and HM Treasury are developing their own rules. Crafting a shared approach will require careful negotiation, flexibility, and a willingness to learn from each other’s successes and missteps.
There are also domestic political considerations. A high-profile visit from US President Donald Trump was expected to give the talks a boost, though there have been rumors of delays due to a significant domestic event in the UK. Nevertheless, the associations remain optimistic that policy momentum is building. Recent policy consultations by HM Treasury and the Bank of England on integrating stablecoins into the UK’s payment system, along with the reported lifting of a ban on crypto exchange-traded notes (ETNs) for retail investors from October 8, signal a growing openness to digital assets.
Public interest in crypto is also on the rise. A report from August, cited by Cointelegraph, found that about a quarter of UK adults would consider including cryptocurrencies in their retirement plans. This growing acceptance among ordinary Britons, combined with the government’s ambition—articulated by Prime Minister Rishi Sunak in 2022—to make the UK a "global hub for digital asset technology," has created a powerful tailwind for reform.
Meanwhile, the global context is shifting rapidly. Singapore has already implemented a stablecoin framework, and Dubai’s Virtual Assets Regulatory Authority (VARA) has rolled out licensing for digital assets, attracting international capital and talent. These proactive moves are giving Asia and the Middle East a head start in both regulatory clarity and innovation, providing fertile ground for experimentation and investment. As the UK trade groups warn, if Britain fails to keep pace, it could see jobs, capital, and influence flow to these new centers of gravity—potentially undermining London’s long-held status as a financial capital.
The benefits of including blockchain and digital assets in the UK-US Tech Bridge are substantial. For businesses, a clear legal framework would reduce compliance costs and increase investor confidence. For the broader economy, it could mean more jobs, greater innovation, and a stronger voice in setting the rules for the digital age. For consumers, faster and cheaper payments, new investment opportunities, and better access to financial services are all on the table.
Still, there are tough questions to answer. Stablecoins must be secure and transparent, with robust backing and oversight. Tokenization raises legal issues around ownership and transfer of assets. Both countries will need to develop strong consumer protections and risk management systems to ensure that innovation does not come at the expense of safety.
Negotiations over the Tech Bridge are set to continue in the coming weeks, with trade groups pledging to keep up the pressure for blockchain inclusion. The outcome will shape not just the future of UK-US financial cooperation, but also the wider race to define the standards and infrastructure of tomorrow’s global economy.
As the world watches, the UK faces a pivotal choice: embrace the future of finance and help write the rules, or risk being left behind as others set the pace.
