FCA sets out proposals to support tokenisation 14 October 2025UK Reporter: Zarah Choudhary
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The Financial Conduct Authority (FCA) has set out plans to support tokenisation, to drive innovation and growth in asset management.
The plans include guidance to provide firms with additional clarity to aid adoption of this new technology.
The authority says that it is committed to supporting innovation to help the sector continue to grow, as set out in its strategy.
The FCA has been actively working with industry to deliver these benefits for asset managers in the UK.
The FCA’s proposals include: guidance on operating tokenised fund registers under current FCA rules through the UK Blueprint model; a streamlined alternative dealing model for fund managers to process buying and selling of units in authorised funds, whether traditional or tokenised; a roadmap to advance fund tokenisation and address key barriers like using public blockchains and settling transactions entirely on the blockchain; and a discussion on how tokenisation models could evolve and how regulation may need to change.
Simon Walls, executive director of markets at the FCA, says: “Tokenisation has the potential to drive fundamental changes in asset management, with benefits for the industry and consumers.
“There are many things that firms can do under our existing rules and more that become possible with the changes we propose enacting now.
“We stand ready to design the next stage with the industry — this publication suggests a path. The UK has the opportunity to be a world-leader here and we want to provide asset managers with the clarity and confidence they need to deliver.”
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