The Bank of England launched a formal consultation on May 18, 2026 proposing to extend its Real-Time Gross Settlement system and CHAPS high-value payment network toward near-continuous 24/7 operation, with a phased implementation targeting weekend settlement by 2029 and extended daily windows by 2031 — signaling a structural commitment to integrating tokenized finance into the UK's core payment infrastructure.
The Bank's proposals outline a two-phase approach. The first phase, targeted for 2029, would introduce settlement on Sunday and selected bank holidays — historically the largest gaps in the UK's interbank settlement calendar. The second phase, targeted for 2031, would extend settlement windows during regular weekdays. The long-term ambition is a "22×6 model" progressing toward near-continuous "23.5×7 CHAPS settlement," the closest practical approximation to always-on settlement within a system that still requires human oversight and maintenance windows.
The Bank noted that its RT2 system, renewed in April 2025, was "designed as a platform for innovation" and that "a wide range of organisations can access RT2, the system is more resilient, and it has the capability to operate near 24x7" — establishing that the infrastructure barrier is not technical but one of sequenced policy implementation.
Alongside the settlement hours consultation, the Bank launched a Synchronisation Lab in May 2026, selecting 18 organizations to experiment with synchronized settlement in a non-live environment. Use cases being tested include house purchase settlement elimination of exchange-to-completion risk, cross-border FX payment vs. payment synchronization, collateral optimization, and delivery vs. payment for tokenized securities. The Bank has also committed to launching a live synchronization service in 2028, enabling tokenized equivalents of eligible assets to function as collateral in central counterparty clearing and Bank of England monetary policy operations.
The settlement hours consultation is part of a broader coordinated package that also includes a joint tokenization vision from the Bank of England and the FCA for digital wholesale markets, and updated PRA guidance on wholesale stablecoins that moves away from strict ring-fencing requirements. The Digital Securities Sandbox, currently including 16 participating companies, is being expanded to include regulated stablecoins, with HM Treasury piloting a digital gilt instrument (DIGIT) within the sandbox.
For investors in tokenized assets, digital securities, and UK financial infrastructure, the Bank's settlement architecture roadmap provides an unusually clear timeline for when tokenized finance can realistically enter core markets at scale. The 2028 live synchronization service is particularly significant — it establishes a credible date by which tokenized bonds, equities, and other assets can begin settling against central bank money in real time, eliminating the remaining friction between on-chain and off-chain settlement finality. Firms building tokenization infrastructure for UK institutional markets should calibrate their commercialization timelines to align with these milestones.
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Source: CryptoSlate