The UK government has unveiled a new regulatory package aimed at reshaping the country’s payments landscape, with a focus on digital assets, tokenisation, and emerging AI-driven financial activity. The measures were announced by HM Treasury during Fintech Week in London, alongside Economic Secretary to the Treasury Lucy Rigby.
The initiative outlines how the UK plans to modernise payment services regulation and align it with rapid developments in financial technology. The government confirmed that it will soon launch a consultation on reforms covering payment services and electronic money, with the goal of creating a unified framework that spans both traditional and tokenised financial systems.
Single framework for traditional and tokenised payments
At the core of the proposal sits a plan to integrate existing payment regulations into a single structure that includes stablecoins and tokenised deposits. Authorities stated that this approach will establish “a single, coherent framework for both traditional and tokenised payments.”
The move reflects a broader shift in financial infrastructure, where blockchain-based settlement systems and programmable payments continue to gain traction. Stablecoins, in particular, have emerged as a key focus. The government confirmed that it will regulate stablecoins used for payments under a forthcoming issuance regime, which aims to bring these instruments within the scope of formal oversight.
The Treasury also intends to reduce administrative requirements for firms that want to offer stablecoin-based payment services. Officials framed this step as necessary to maintain the UK’s competitiveness as a destination for digital asset innovation while preserving safeguards for users.
Expanding oversight and adapting to AI-driven transactions
The package introduces expanded responsibilities for the Financial Conduct Authority (FCA), particularly in relation to Open Banking. The regulator will receive additional powers to support the development of new Open Banking payment models within commercial frameworks.
Another notable element involves the role of artificial intelligence in payments. The government confirmed that it will explore how regulation should apply when AI agents conduct transactions on behalf of consumers or businesses. This reflects a growing shift toward automated financial management systems, where payments occur without direct user initiation.
Lucy Rigby addressed the broader vision behind the reforms, stating:
“Fintech is a true British success story, and we are backing the industry to maintain its competitive edge and go even further and faster in driving growth.”
She added:
“Today’s package is our latest stake in the ground as we build a payments ecosystem that is secure, competitive and fully equipped to harness the opportunities created by rapid technological change.”
Delighted to have announced the appointment of Chris Woolard CBE as the Wholesale Digital Markets Champion today!
— Lucy Rigby KC MP (@LucyRigby) April 21, 2026
As Champion, Chris will help provide leadership & coordination to help us drive forward the digitalisation of our markets - an incredibly important agenda. pic.twitter.com/a74gX2CT2o
Leadership push for tokenised markets
As part of the initiative, the government appointed Chris Woolard CBE as Wholesale Digital Markets Champion. Woolard, a former interim CEO of the FCA and current partner at EY, will lead efforts to develop a tokenised wholesale financial system.
His role includes coordinating industry participation and supporting the implementation of the UK’s Wholesale Financial Markets Digital Strategy. The strategy sets out a long-term vision for digitising financial markets through tokenisation.
Woolard said:
“It’s an honour to be appointed Digital Markets Champion for the UK’s Wholesale Financial Markets Digital Strategy. As financial markets increasingly move away from manual processes to digital, tokenised systems, collaboration and an open two-way dialogue between the private and public sectors will best support the Strategy’s success, and will ultimately enhance the UK’s global competitiveness as a leader in digital markets.”
Industry response highlights opportunities and constraints
Industry participants acknowledged the direction of the reforms while pointing to practical challenges. Philip Belamant, co-founder and CEO of Zilch, emphasised the role of AI in reshaping financial behavior:
“AI will fundamentally change how people interact with money, shifting payments from something consumers actively manage to something that is intelligently managed and optimised in the background.”
He added:
“As this becomes a reality, it’s critical that regulation evolves to support innovation while maintaining strong consumer protections.”
Anthony Yeung, chief commercial officer at CoinCover, noted that regulatory clarity alone will not determine adoption. He pointed to operational resilience, custody systems, and disaster recovery as essential factors for trust in digital assets.
Strategic context and next steps
The reforms align with the UK’s broader Financial Services Growth and Competitiveness Strategy, also known as the Leeds Reforms. The plan outlines a ten-year ambition to position the UK as a global hub for financial services investment.
The Treasury confirmed that fintech remains a significant contributor to the economy, with more than 3,000 firms operating across the country and attracting over £2.6 billion in investment last year.
Officials also announced £1 million in additional funding for the Centre for Finance, Innovation and Technology (CFIT) to support collaboration across the sector.
The government expects its upcoming consultation to gather feedback on how to refine the regulatory framework. The proposed changes aim to prepare the payments ecosystem for wider adoption of stablecoins, tokenised deposits, and AI-enabled financial services, while maintaining consumer protections and system resilience.
Gunel Ismayilova
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