By Perry Scott, Kraken Sr. Manager 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 flows. Then the post-financial crisis reforms of the G20 era, where U.S. and U.K. leadership drove international standards on clearing, risk management, and transparency.
Time and again, cooperation between these two centers has proven catalytic for global markets.
Today, the digital asset revolution presents a similar inflection point. Crypto and blockchain technologies are moving from the fringes of the financial system toward its core, from payments to tokenization to decentralized finance.
Whether this transformation promotes trust, inclusion and competitiveness will depend on whether the largest economies create rules that are clear, consistent and globally aligned.
Three priorities for the U.S.-U.K. partnership
Delivering a transatlantic passporting regime
Establishing interoperability across the Atlantic will increase efficiency whilst deepening liquidity, providing better execution outcomes for users. This alignment would also reinforce international standards-setting to prevent fragmentation or regulatory arbitrage.
For the U.K. specifically, improved access to U.S. capital markets can help entice fresh investment, providing a much-needed shot in the arm for economic growth prospects.
Establishing compatible frameworks on tokenization
Similarly, regulatory alignment on tokenization will boost cross-border innovation across the financial services sector. Creating compatible rules around custody and settlement will enable seamless trading across a broader investor base – all while reducing friction.
Uniting international stablecoin leadership
The U.S. Congress is advancing stablecoin and market structure legislation at pace. The U.K. must match this ambition, moving beyond consultation to policy action. Proposals 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 interest. They are becoming a foundational layer of the financial system.
The question is whether the U.S. and U.K. will once again lead together in setting the standards for this future, proving that clarity, innovation, and consumer protection are complementary – not competing – goals.
What 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 consistent.
Ten years from now, the U.S.-U.K. framework could stand as the model that other nations follow, ensuring that innovation is not fragmented by borders, but strengthened by international cooperation.
Kraken 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 generation.
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 management.
Although 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.
