UK regulator outlines roadmap for tokenised funds
Tokenisation is expected to drive competition, expand investment options, and deliver more personalised and cost-effective products.
The UK’s Financial Conduct Authority (FCA) has unveiled new plans to advance tokenisation in the asset management sector, aiming to drive innovation and long-term growth. With 2,600 firms managing £14 trillion in assets, the regulator aims to give firms clarity and confidence in adopting blockchain solutions.
Tokenisation, which represents assets digitally using distributed ledger technology, is expected to increase competition, enhance investor choice, and open access to private markets. It could also make investing more cost-effective and tailored, particularly for new investors.
The FCA’s plans include guidance for tokenised fund registers, a simpler dealing model, and a roadmap to tackle blockchain settlement barriers. The regulator’s approach aligns with its broader digital assets strategy, aiming to make the UK a global leader in asset management innovation.
Simon Walls, executive director of markets at the FCA, said tokenisation could bring ‘fundamental changes’ to the industry, highlighting that the UK now has a real opportunity to lead globally in this emerging space.
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