Ripple has been selected as a core partner in the UK government's 'on-chain market' transition strategy, marking its shift from a crypto company to a recognized financial infrastructure provider. The move signals a major change in how the market views Ripple — no longer just a regulated crypto firm but a builder of institutional financial systems.
UK's Tokenization Roadmap
Chris Woolard, head of digital markets at the UK Treasury, released a report outlining plans to move tokenized assets such as repos, bonds, and funds from experimental stages to live markets within 12 months. The report warns that if global liquidity and standards are established abroad first, the UK could fall behind in the competitive race.
Ripple is part of the task force leading this transition, positioned as a key operator complementing existing financial systems. Woolard estimates that tokenization could boost the UK economy by £33 billion (approximately 658 trillion won) annually through productivity and cost efficiency gains, and increase annual tax revenue by £14 billion (about 279 trillion won) within a decade.
Hybrid Model and Institutional Adoption
The report proposes a hybrid model combining public blockchain liquidity with permissioned institutional networks. It cites BlackRock's tokenized money market fund BUIDL, built on Ethereum (ETH) with compliance handled by Securitize, as an example of traditional finance merging with blockchain. However, it also notes structural limitations of public blockchains, such as transaction reversals during network reorganizations, which conflict with the settlement finality required by traditional finance.
Ripple's recent moves align with this trend. It acquired prime brokerage firm Hidden Road for $1.25 billion (about 1.87 trillion won), now operating as Ripple Prime. The firm holds both an investment company license and crypto asset registration from the UK's Financial Conduct Authority (FCA), making it one of the few entities handling forex, digital asset spot, and derivatives trading simultaneously. Additionally, Santander UK runs a cross-border payment service using Ripple's blockchain in a white-label structure where the bank maintains customer contact while Ripple technology handles fund transfers.
Regulatory Race and Stablecoin Goals
The report notes that the UK and US are moving at similar speeds on stablecoin regulation, both targeting full institutional adoption by 2027. However, the UK is ahead in wholesale financial regulation, while the US Clarity Act remains stalled in Congress. The UK currently approves crypto firms under its anti-money laundering framework, with new regulations under the Financial Services and Markets Act (FSMA) set to begin in September 2025 and take full effect in October 2027. Still, some in the industry argue that UK licensing is slower than in the US, where the SEC allowed the Depository Trust Company a three-year tokenization pilot in December 2025 without prior testing.
This report underscores that on-chain finance, led by Ripple, has evolved from a mere experiment into a matter of national competitiveness. The speed of regulation and market liquidity will be key factors determining future financial dominance among nations.