Strengthening the US-UK Partnership for Markets of the Future

Coinbase is proud to support this historic partnership, working alongside leading financial institutions and fintech innovators to shape the future of global capital markets.

The US and UK have deep capital markets, world leading financial institutions, and a strong commitment to growth and innovation in financial services. Cooperation between these two leading financial centres is critical given the profound opportunity facing global capital markets, coming from tokenisation.

Tokenisation is set to revolutionise global capital markets and democratise access to financial services, allowing individuals to trade, borrow, and invest in ways previously reserved for institutional investors. There are transformative benefits to both economies associated with tokenisation: the UK and US, as global financial leaders, have the most to gain from this shift, unlocking deeper liquidity, broader financial participation, new capital for businesses, and stimulating financial activity that drives growth. A strong financial services partnership, focused on tokenisation, will solidify the US and UK’s leadership position in driving innovation for capital markets domestically and internationally. 

As part of this partnership, both nations should focus on:

• Tokenising traditional financial assets: The partnership should focus on bringing tokenisation to fruition, so that UK and US stocks can be launched and distributed across both jurisdictions.

• Stablecoin leadership: The US and UK should commit to a transatlantic corridor for stablecoins that allows stablecoins to be used in wholesale markets (for tokenisation) and payments as part of transatlantic commerce, with GBP and USD stablecoins both permitted for use.

• Mutual recognition of the regulatory regimes: The US and UK should align on regulatory approaches to promote best practices at home and internationally on crypto asset regulation, and pursue mutual recognition so that well regulated crypto asset firms do not face duplicative or contradictory requirements when offering services to customers in each country.

To deliver on a tokenised future, and capitalise on the opportunities for global capital markets, major jurisdictions must embrace stablecoins, as the only on-chain settlement that currently exists for financial markets. The US is leaning into stablecoins as part of its strategic focus on tokenisation of traditional financial assets; meanwhile, the Bank of England is proposing caps that will effectively preclude the use of stablecoins in wholesale markets. The UK needs stablecoin leadership, and a viable Sterling stablecoin, to deliver on the opportunities associated with this partnership, and to drive progress in capital market innovation more generally. 

The UK-US partnership is more than a bilateral relationship; it is a powerful force for progress. By working together, these two nations can lead the world in tokenisation, driving innovation, growth, and financial inclusion. Coinbase is proud to invest in this partnership and help shape the future of the global economy.