UK Fund Managers Get Green Light for Tokenised Funds to Boost Investment Sector
• British investment managers get regulatory approval to develop tokenised funds, which split assets into smaller tokens backed by blockchain • Tokenisation aims to make fund assets cheaper, more transparent, and easier to trade while giving investors access to a wider range of assets • Funds can take first steps towards offering tokenised funds if assets are mainstream and valuation/settlement arrangements stay the same • Industry sees tokenisation as having potential to increase efficiency, liquidity, risk management, and ability to create bespoke portfolios • Tokenised funds seen as way for Britain to bolster liquidity in asset management sector post-Brexit, following steps by US, Europe, Asia