SKN | How Tokenisation and Private Credit Are Transforming UK Market Infrastructure

Key Takeaways:

• Tokenisation is accelerating the digitisation of UK market infrastructure, enhancing settlement efficiency and transparency for complex capital structures.
• Private credit is increasingly filling gaps left by traditional lenders, reshaping financing dynamics for corporates and ultra-high-net-worth investors.
• The convergence of tokenised assets and private lending creates opportunities for discreet, cross-border wealth optimisation—but requires sophisticated custody and regulatory navigation.
• Swiss private banks are strategically adapting to integrate tokenised securities and bespoke credit solutions into international wealth structures while maintaining capital preservation and legacy planning objectives.

The UK market is entering a phase of structural transformation. Tokenisation—digitally representing financial instruments on distributed ledgers—is no longer experimental; it is reshaping securities settlement, reducing counterparty risk, and compressing settlement cycles from T+2 to near-instant execution. Simultaneously, private credit is scaling rapidly, with alternative lenders providing bespoke financing solutions to mid-market corporates and high-net-worth families, offering terms that traditional banking structures struggle to match. For clients with Swiss banking relationships, these developments are not abstract; they directly influence asset allocation, liquidity planning, and cross-border structuring.

Why Tokenisation Matters for HNWI Asset Structures

Tokenised securities allow fractional ownership of high-value assets—equities, bonds, real estate, and even art—without the administrative friction of traditional custody models. For ultra-high-net-worth individuals, this translates into greater flexibility: bespoke positions can be executed, transferred, and monitored in near real-time, even across multiple jurisdictions. Settlement efficiency reduces operational risk and allows Swiss private banks to offer more precise wealth preservation strategies. Regulatory alignment remains critical; the UK Financial Conduct Authority’s evolving guidance on digital securities provides a framework but requires careful legal structuring for cross-border holdings.

Private Credit: Filling Strategic Gaps

Traditional bank lending in the UK has become increasingly selective, leaving gaps in corporate and family-office financing. Private credit funds, often structured offshore for tax efficiency and discretion, are stepping in to provide high-yield, tailored capital solutions. For HNWI clients, access to these instruments allows for yield enhancement and strategic capital deployment without relying solely on public markets. Importantly, integrating private credit into Swiss bank accounts requires rigorous due diligence on fund governance, risk modelling, and operational transparency.

The Intersection: Tokenised Private Credit

The convergence of tokenisation and private lending introduces a new layer of sophistication for cross-border wealth. Tokenised private debt can facilitate secondary market liquidity, enhance reporting granularity, and provide granular control over exposure. Swiss private banks in Zurich and Geneva are increasingly collaborating with UK fintech custodians and private credit managers to offer clients bespoke solutions that combine capital efficiency with confidentiality. For HNWIs, this is not about chasing yield; it is about embedding cutting-edge infrastructure into legacy planning and capital preservation frameworks.

Strategic Implications for Swiss Banking Clients

These UK developments underscore the importance of proactive wealth architecture. Clients seeking cross-border diversification should evaluate tokenisation-ready custodians, private credit access channels, and legal wrappers that preserve confidentiality while ensuring regulatory compliance. Portfolio managers in Swiss banks are adapting internal reporting, risk analytics, and credit monitoring frameworks to accommodate tokenised instruments, offering clients visibility and control previously unavailable in traditional structures.

Next Steps for HNWIs

As UK market infrastructure evolves, the ability to integrate tokenised assets and private credit into international wealth structures becomes a differentiator for capital preservation and legacy planning. HNWIs should engage early with trusted advisors to identify liquidity-efficient, compliant, and discreet structures that align with long-term objectives. For a confidential discussion regarding your cross-border banking structure, contact our senior advisory team.

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