Tokenised securities and digital bonds in the UK
Quick answer: Tokenised securities are regulated investments. They must be promoted and sold by FCA-authorised firms. Tax follows the underlying asset — shares, bonds or funds — not generic crypto CGT treatment alone.
Tokenisation puts traditional financial instruments on a blockchain. When a token represents a share, bond or fund unit, UK financial regulation and tax treatment follow the underlying investment — not standard crypto rules alone.
What tokenisation means
A tokenised security is a digital representation of ownership or debt recorded on a blockchain or similar infrastructure. The economic rights mirror traditional securities.
FCA perimeter
Issuing, arranging or advising on tokenised securities requires FCA authorisation. Financial promotions must comply with full investment rules, not only crypto promotions guidance.
Tax treatment
Gains on tokenised shares may fall under standard share CGT rules. Income from tokenised bonds is taxed as interest. Consult HMRC guidance for your specific product.
Frequently asked questions
Are tokenised gilts the same as crypto?+
No. Tokenised UK government debt would be a regulated financial instrument, not an unbacked exchange token.