Deep Tide TechFlow message: On July 16, according to Cointelegraph, the U.S. Department of the Treasury and the UK Treasury released a joint proposal as a result of the “Future Markets Transatlantic Working Group,” seeking coordination on the regulation of tokenized assets and stablecoins. Both sides recommended establishing a private-sector-led cross-border tokenized use-case testing mechanism and pushing financial regulators to identify shared regulatory approaches.

On stablecoins, both sides aim to create a “cross-border dynamic stablecoin market,” requiring stablecoins to be backed by high-quality liquid assets at least on a 1:1 basis. Also, according to an industry report backed by the UK government, if tokenization develops at global scale, by 2035 it could increase the UK economy’s annual output by $44B; the report calls for the UK to issue tokenized bonds in the first quarter of 2027.