UK FCA Working on Blue Print for Fund Tokenization Due This Year

The U.K. financial regulator said earlier in the year it was speaking to firms and trade groups in relation to proposals on fund tokenization.

AccessTimeIconOct 12, 2023 at 1:17 p.m. UTC

The U.K.'s regulator, the Financial Conduct Authority (FCA), has been working with the Technology Working Group on a blueprint for fund tokenization, FCA Chair Ashley Alder said in a Thursday speech.

FCA, the U.K.'s financial regulator, published a discussion paper in February this year on updating and improving a regime for asset management in the country. The paper touched on "how fund managers might adopt distributed ledger technology to offer fully digitised funds to the public," Alder said.

A tokenized fund is a fund that issues digital tokens that represent interests in the fund and uses distributed ledger technology.

At the time, the FCA said in its discussion paper it was actively engaging with firms and trade associations about proposals for fund tokenization to develop its thinking and consider rule changes.

"We’ve been working with the Technology Working Group, which sits under the Treasury’s Asset Management Taskforce, on a blueprint for fund tokenization," Alder said. "The working group will publish this later in the year."

Edited by Aoyon Ashraf.


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Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.