The new tokenization roadmap recommends using permissioned blockchains in the initial phase.
UK funds have been given the go-ahead to develop tokenization to improve the efficiency, transparency and competitiveness of the industry, the Investment Association, the body representing the UK investment management industry, said.
Working closely with the Financial Conduct Authority (FCA) and HM Treasury, the Technical Working Group of the Government’s Asset Management Working Group has today launched the adoption of DLT-backed fund tokens in its report Tokenizing UK Funds: A Blueprint for Implementation ization roadmap. "
According to the report, these “digital funds” will represent investors’ interests through digital tokens on distributed ledger technology rather than traditional record-keeping methods.