The United Kingdom is betting big on tokenisation.
In a major policy step, the Financial Conduct Authority, Britain’s financial watchdog, outlined plans to support tokenisation in the country’s nearly $19 trillion asset management industry.
The FCA described the move as a key move toward driving innovation and maintaining Britain’s global financial edge.
“Tokenisation has the potential to drive fundamental changes in asset management, with benefits for the industry and consumers,” said Simon Walls, the FCA’s executive director of markets.
The UK is ready to be a “world leader,” Walls added.
The proposals include new guidance for fund tokenisation, an alternative dealing model for trading tokenised units, and a roadmap for future rule changes that would allow asset managers to settle transactions directly on public blockchains.
Attracting new investors
The FCA’s plan marks a decisive step toward integrating distributed ledger technology into mainstream financial markets.
Tokenisation – the process of recording ownership of assets on a blockchain – could lower fund administration costs, improve transparency, and open up access to private markets, the FCA said.