Leading British industry associations are urging the government to integrate blockchain technology into an upcoming “Tech Bridge” agreement with the United States. They caution that neglecting this technology could diminish the UK’s influence in shaping international financial standards.
As Bloomberg noted, this appeal comes ahead of President Trump’s official visit to the UK.
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UK Industry Advocates Increase Pressure
In a letter addressed to Business Secretary Peter Kyle on Thursday, a consortium of a dozen trade organizations representing the financial, tech, and crypto sectors emphasized the importance of incorporating distributed ledger technology (DLT) as a central element of the UK-US Tech Bridge. A copy of the letter was also sent to Lucy Rigby, Economic Secretary to the Treasury, responsible for overseeing the government’s approach to cryptocurrency.
The letter stated, “Excluding digital assets from the UK-US Tech Bridge would be a significant strategic misstep. It risks relegating the UK to a secondary position, while other regions, notably in the Middle East and Asia, advance in establishing the benchmarks that will define the future of finance.”
President Trump, who has expressed strong support for digital assets during his second term, will be accompanied by a delegation of prominent technology leaders, including Sam Altman of OpenAI and Jensen Huang of Nvidia.
The Financial Times reported that the agreement will outline collaborative ventures in areas such as artificial intelligence and quantum computing. A UK government spokesperson acknowledged the US and UK as “natural allies” but refrained from commenting on “any potential announcements.”
Focus on Stablecoins and Tokenization
In their correspondence, the industry groups highlighted stablecoins and tokenization as areas of vital strategic importance for both nations. Tokenization involves representing assets like bonds or bank deposits on blockchain ledgers, which can expedite settlement processes and broaden investor participation.
Stablecoins, typically linked to traditional currencies and supported by readily available reserves, are progressively integrating into mainstream financial operations.
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The UK has actively begun developing its regulatory framework in this field. In April, HM Treasury released the Cryptoassets Order 2025, expanding the scope of the Financial Services and Markets Act to include exchanges, custodians, and issuers of cryptoassets.
The Financial Conduct Authority (FCA) has initiated consultation processes regarding licensing requirements for stablecoin issuance and crypto custody services. It has also presented a prudential framework for crypto firms, encompassing capital adequacy and operational conduct.
Parliament is currently reviewing the Property (Digital Assets etc) Bill, which aims to formally recognize crypto assets as property and broaden regulatory oversight to include custody and lending activities. These combined measures aim to provide legal clarity while aligning the UK with evolving international standards.
What’s at Stake with the Tech Bridge?
Industry groups view the bilateral agreement as a crucial opportunity to synchronize standards with the US, particularly given recent developments. In July, President Trump enacted significant US legislation governing fiat-backed stablecoins, establishing a federal regulatory structure for issuers. Supporters contend that without similar clarity, the UK risks falling behind the US, the EU’s MiCA regulations, and ongoing initiatives in Asia and the Middle East.
Global organizations continue to advocate for modernization in financial infrastructure. The Financial Stability Board has emphasized the need for more affordable and efficient cross-border payments, highlighting the current average fee of 6.4% for a $200 transfer. The Bank for International Settlements has suggested that stablecoins, tokenized deposits, and central bank digital currencies are likely to coexist, underscoring the importance of interoperability and shared security measures.
Former Prime Minister Rishi Sunak pledged in 2022 to position the UK as a “global hub for cryptoasset technology,” but a comprehensive regulatory system is still under development. This ongoing gap underscores the rationale behind the current advocacy efforts: the groups warn that without adequate coordination, UK businesses could encounter “fragmented regulatory landscapes, limited access to major transatlantic markets, and intensifying competitive pressures.”
Industry publications have also detailed domestic obstacles. BeInCrypto reported that upcoming tax regulations scheduled for 2026 will require platforms to report customer data to HMRC under the OECD’s Cryptoasset Reporting Framework, raising both compliance and privacy concerns. Another analysis indicated that restrictions on retail access to crypto-linked exchange-traded notes have slowed adoption, although the FCA intends to reassess these limitations.
Currently, the Tech Bridge presents an opportunity to test the UK’s aspiration to shape digital asset standards, rather than simply adopting them. The incorporation of blockchain technology would align London with Washington’s policy shift and signal the UK’s intention to actively compete in the realm of tokenization and programmable money, instead of passively observing from the sidelines.