The UK has long been a global leader in financial services. Today, we have a unique opportunity to lead again – this time in building the digital infrastructure that will define the future of finance.
Around the world, governments are racing to modernise capital markets. From stablecoins and tokenised bonds to blockchain-based settlement and smart contracts – new technologies are reshaping the global financial order. But many of these efforts are happening in isolation. Instead of making things simpler, they are creating more complexity: more systems, more confusion, more risk.
It doesn’t have to be this way. The UK has a unique opportunity to show the world how digital finance can work better – for business and consumers alike. We can set an example by offering clear rules and practical technology that connects markets, not divides them, with the City of London as the engine driving this transformation.
To make that vision a reality, we need tools that bring everything together – not just more tech for the sake of it. One tool that can help is an industry-standard called Common Domain Model, or CDM. It may not sound exciting, but it’s hugely powerful. It is exactly the kind of joined-up thinking the chancellor called for in her Mansion House speech – and must be backed by ministers.
Simply put, CDM is like a shared language for financial transactions. It helps different banks, systems and platforms understand each other. That means less room for error, faster processing, and lower costs. In a world of digital assets and faster settlement times, this shared language is essential.
As chair of the all-party parliamentary group on Blockchain, I have seen the first hand the importance of building secure, trusted systems. With the right foundations, digital finance can improve how we invest, save, and manage risk. Without them, we risk making markets more fragile and less fair.
That’s why the UK’s Digital Gilt Instrument (DIGIT) pilot is such a positive step. I am pleased to see this project is supported by HM Treasury and the Debt Management Office, exploring how to issue government bonds using new technology like distributed ledgers. As part of this project, it’s important we support UK fintech companies to help shape the outcome, showing that British innovation can lead from the front. Crucially, through CDM, we can also connect DIGIT with existing legacy systems, thus enabling that strategically important interoperability.
The benefits go beyond efficiency. By using standards like CDM, we can cut down the time it takes to settle trades. This frees up money that would otherwise sit idle, reduces the risk of failure, and saves both private firms and public services millions each year.
Most importantly, CDM helps us avoid a future where digital systems don’t talk to each other. If every country or platform builds its own way of working, we’ll end up with a mess. But if we agree on simple, shared tools, everyone wins.
It is vital that the UK becomes a creator, not just a consumer of these technologies. Let’s deliver interoperable architecture – anchored in standards like CDM – to prove how bold, connected, and responsible innovation looks. We need to develop sovereign capabilities and support British firms building the digital future.
The UK has always played a central role in global finance. Now, we can do the same for digital markets; not by building bigger systems, but by building smarter ones. Jurisdictions around the world from the US to Singapore are moving at pace here.
So as ministers and officials consider the future of financial technology – from DIGIT to the wider digital assets agenda – I call on them to prioritise UK-based solutions that reinforce our economic resilience and digital sovereignty. We must build the infrastructure of the future – and we must make it British.
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