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UK Opens Door for Blockchain Fund Tokenization

The UK’s Financial Conduct Authority (FCA) has unveiled a plan to help fund managers bring blockchain into traditional finance. The move could reshape how investments are managed and traded.

A Push for Efficiency and Innovation

According to the FCA, tokenization can make asset management faster, cheaper, and more transparent. It allows funds to issue digital tokens representing shares of investment portfolios — cutting out paperwork and costly intermediaries. (Tokenization = converting real assets into blockchain-based digital units.)

The FCA’s Roadmap

The roadmap includes a new UK Blueprint model to manage tokenized fund registers. It also proposes simplified systems for processing both traditional and tokenized fund units, plus a future shift toward blockchain settlement.

Simon Walls, the FCA’s markets director, said the UK aims to be a “world leader” in tokenized finance. The regulator wants to give firms “clarity and confidence” to experiment responsibly within existing rules.

Policy Pressure Pays Off

After months of industry lobbying, including a Coinbase petition for pro-innovation regulation, the UK seems ready to act. The FCA recently lifted its ban on crypto exchange-traded notes (ETNs) for retail investors and hinted at easing limits on stablecoin holdings.

This shift could put London back on the global crypto map — and show that traditional finance and blockchain can finally share the same table.

What do you think?

Written by 365Crypto

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