UK Managers Embrace Blockchain for Tokenization
UK investment managers are being encouraged to adopt blockchain technology for fund tokenization, a departure from traditional record-keeping practices.
The Investment Association reports that fund tokenization could lead to a more efficient and transparent financial industry, introducing a real-time record-keeping system shared among all parties involved in servicing the fund.
This would result in reduced fund administration costs, simplified reconciliation processes, and faster settlement times.
The report emphasizes the importance of catering to both domestic and international investors and provides opportunities for a wide range of firms in the sector.
Tokenized funds must be established in the UK, FCA authorized, and compliant with traditional financial industry standards without changing existing legal and regulatory rules.
The UK government supports this blueprint model, viewing it as a positive step towards advancing technology’s role in asset management and a testament to the country’s openness to innovation.
(With inputs from Shikha Singh)
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