UK’s FCA Unveils Roadmap to Support Blockchain-Based Fund Tokenization
The UK’s Financial Conduct Authority (FCA) released a roadmap to help asset managers adopt blockchain technology for fund tokenization, aiming to boost innovation and growth in asset management. The FCA states that tokenization can increase competition, reduce costs, and expand investment access, especially in private markets and infrastructure. The roadmap includes guidance for managing tokenized fund registers, a simplified framework for handling both traditional and tokenized fund units, and a plan for blockchain-based settlement. The FCA is also considering regulatory adjustments as tokenization adoption grows, aiming to position the UK as a global leader. Recently, industry groups and firms like Coinbase have pushed for more supportive crypto policies, while previous UK policies faced criticism for stifling innovation. In response, the FCA lifted its ban on crypto exchange-traded notes for retail investors, and the Bank of England is reportedly softening limits on corporate stablecoin holdings.
