The report also pointed out a problem with permissionless chains: a confirmed transaction can, in theory, be reversed by a chain reorganization. This introduces deal finality risk that traditional infrastructures do not face.
However, according to the report, established companies in traditional finance and crypto-native companies are converging.
As an example, he cited Ripple’s purchase of the main Hidden Road corridor for $1.25 billion. Hidden Road, now Ripple Prime, is among the companies that hold an investment firm license and a cryptoasset register covering spot and derivatives in the digital asset and foreign exchange markets from the Financial Conduct Authority.
Santander UK’s use of the Ripple blockchain for cross-border payments was cited as an example of white labeling. The bank takes care of the customer relationship while Ripple’s technology moves the money.
Woolard puts the US and UK markets on similar timelines for stablecoin regulation, with both targeting full regimes in 2027. On wholesale policy, the UK is ahead of the US, where the Clarity Act remains stalled.
While the FCA is already authorizing cryptocurrency firms under money laundering regulations, the regulator’s new regime under the Financial Services and Markets Act (FSMA) will come into force next year.
Applications under FSMA open on September 30, ahead of the launch date in October 2027.
The report admits that the industry still views UK authorization as slower than the US, where the SEC’s December 2025 no-action letter gave the Depository Trust Company a three-year tokenization pilot that allows companies to go live rather than building for a test environment.
