Barclays and PwC Report: Tokenisation Could Inject £33bn into UK Economy by 2035

Quick Summary

The UK economy stands to gain a £33bn annual boost by 2035 through the widespread adoption of tokenisation. A joint report by Barclays and PwC highlights that digitising real-world assets and money will streamline trade, lower transaction costs, and enhance global financial competitiveness for the United Kingdom.

How Does Tokenisation Drive UK Economic Growth?

Tokenisation serves as a catalyst for growth by reducing financial friction and allowing capital to flow with unprecedented speed. By representing money and assets as digital tokens on shared infrastructure, the UK can eliminate the need for manual reconciliation and multiple legacy systems. This shift is projected to contribute up to £33bn in annual GDP within the next decade.

• Faster settlement times for complex financial transactions.
• Lower operational costs for households and businesses.
• Improved capital efficiency by directing funds to high-impact sectors.

The report emphasizes that tokenisation is not merely a niche technology but a fundamental infrastructure shift. By moving ownership records and money simultaneously, the financial system becomes more transparent and accessible, fostering a more resilient digital asset landscape.

What Are the Risks of Delaying Digital Asset Adoption?

The UK faces a narrowing window of opportunity as international competitors move rapidly to establish digital asset frameworks. To maintain its status as a global financial hub, the UK must transition from theoretical pilots to real-world application. Failure to act could result in losing investment to more agile jurisdictions that have already standardized their interoperable digital systems.

• Loss of competitiveness against fast-moving global financial centers.
• Reduced investment attractiveness for fintech and blockchain innovators.
• Missed productivity gains across the wider real economy.

"Tokenisation is moving from theory to real-world application. Done well, it can improve how capital flows through the economy, supporting investment, productivity and growth. This report shows why it should be treated as a strategic priority for UK competitiveness, with game changing benefits for businesses, households and the wider economy." said Matt Hammerstein, CEO of Barclays UK Corporate Bank.

How Can the UK Lead the Tokenisation Frontier?

To secure the £33bn economic prize, the report outlines five critical policy priorities. These include establishing a clear national strategy and building interoperable platform infrastructure that allows data to move safely across borders. The UK is uniquely positioned to act as a trusted connector between traditional finance (TradFi) and emerging digital ecosystems.

"The UK has a proud history as a pioneer in financial markets and in technological innovation. We’re now facing the next frontier of finance and must rise to the occasion. Leading on the tokenisation of markets critical to the UK has huge potential benefit for the economy, businesses large and small, and ultimately the way people transact, borrow, save, innovate and grow." said James Moseley, Financial Services Partner and Digital Assets Lead at PwC UK.

FF NEWS TAKE:

This report confirms that tokenisation is no longer a futuristic concept but a strategic economic necessity. A £33bn boost is a massive needle-mover for the UK's post-Brexit economy. However, the warning about the 'narrowing window' is the real story here. If the UK government and regulators don't move from 'consultation mode' to 'execution mode' immediately, this multi-billion pound opportunity will migrate to more crypto-friendly hubs like Singapore or the UAE.