Tokenised Funds Approved for British Investment Managers

British investment managers have received approval to develop tokenised funds, allowing assets to be split into smaller tokens backed by blockchain technology. This move aims to enhance transparency, liquidity, and risk management in the industry. Funds authorized by the Financial Conduct Authority can now begin offering tokenised funds, as long as the investments are in mainstream assets and valuation and settlement arrangements remain unchanged. The Investment Association believes that fund tokenisation has the potential to revolutionize the industry by enabling greater efficiency and the creation of more bespoke portfolios.