UK moves to allow asset managers to use blockchain for fund tokenization

The FCA has outlined a roadmap to help asset managers adopt blockchain and tokenization, aiming to boost efficiency and competition.

The United Kingdom’s Financial Conduct Authority (FCA) revealed a roadmap to help asset managers adopt blockchain technology for fund tokenization.

In a Tuesday announcement, the regulator said the initiative aims to “provide firms with additional clarity” to adopt tokenization and “drive innovation and growth in asset management.”

“Tokenization has the potential to drive fundamental changes in asset management, with benefits for the industry and consumers,” said Simon Walls, executive director of markets at the FCA. “There are many things that firms can do under our existing rules and more that become possible with the changes we propose enacting now,” he added.

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