Reviving transatlantic leadership for the next era of digital assets

By Perry Scott, Kraken ￰0￱ Policy & Government Relations There was the creation of the Eurobond market in the 1960s, which London and New York together transformed into a foundation for global capital ￰1￱ the post-financial crisis reforms of the G20 era, where ￰2￱ ￰3￱ drove international standards on clearing, risk management, and ￰4￱ and again, cooperation between these two centers has proven catalytic for global markets. Today, the digital asset revolution presents a similar inflection ￰5￱ and blockchain technologies are moving from the fringes of the financial system toward its core, from payments to tokenization to decentralized ￰6￱ this transformation promotes trust, inclusion and competitiveness will depend on whether the largest economies create rules that are clear, consistent and globally ￰7￱ priorities for the ￰8￱ Delivering a transatlantic passporting regime Establishing interoperability across the Atlantic will increase efficiency whilst deepening liquidity, providing better execution outcomes for ￰9￱ alignment would also reinforce international standards-setting to prevent fragmentation or regulatory ￰10￱ the U.

K. specifically, improved access to ￰11￱ markets can help entice fresh investment, providing a much-needed shot in the arm for economic growth ￰12￱ compatible frameworks on tokenization Similarly, regulatory alignment on tokenization will boost cross-border innovation across the financial services ￰13￱ compatible rules around custody and settlement will enable seamless trading across a broader investor base – all while reducing ￰14￱ international stablecoin leadership The ￰15￱ is advancing stablecoin and market structure legislation at ￰16￱ ￰17￱ match this ambition, moving beyond consultation to policy ￰18￱ that cap the role of Sterling stablecoins risk limiting their use in wholesale markets and tokenization.

A more balanced approach would ensure both GBP and USD stablecoins can function as reliable cross-border settlement tools, unlocking liquidity, efficiency and innovation across capital markets. A global standard in the making Digital assets are no longer a niche ￰19￱ are becoming a foundational layer of the financial ￰20￱ question is whether the ￰21￱ ￰22￱ once again lead together in setting the standards for this future, proving that clarity, innovation, and consumer protection are complementary – not competing – ￰23￱ would success look like? Five years from now we could see transatlantic markets where tokenised assets trade seamlessly across borders, stablecoins provide trusted settlement in both GBP and USD, and consumers access digital financial services with confidence that rules are clear and ￰24￱ years from now, the ￰25￱ could stand as the model that other nations follow, ensuring that innovation is not fragmented by borders, but strengthened by international ￰26￱ is committed to working with policymakers, regulators, and industry partners on both sides of the Atlantic to help ensure this partnership delivers on its promise, creating open, trusted, and globally competitive markets for the next ￰27￱ Started with Kraken The views and opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of Kraken or its ￰28￱ the term “stablecoin” is commonly used, there is no guarantee that the asset will maintain a stable value in relation to the value of the reference asset when traded on secondary markets or that the reserve of assets, if there is one, will be adequate to satisfy all redemptions.