Joint work between the Treasury, the Financial Conduct Authority (FCA) and representatives from leading investment firms such as BlackRock has resulted in a roadmap for the tokenization of UK investment fund assets.
According to the Investment Managers Association, the roadmap outlines a fundamental model for tokenization of funds that is consistent with the existing UK legal and regulatory framework.
Under the proposed model, FCA-authorized funds would be able to use tokenization for securities sale and redemption transactions, provided they meet certain criteria. These include requirements such as having investment portfolios composed solely of underlying assets and maintaining traditional valuation and settlement processes.
Earlier, UK Finance and Economy Secretary Andrew Griffith called on the FCA to be more lenient on the activities of cryptocurrency firms.