UK Regulator Proposes Allowing Tokenised Funds to Attract Younger Investors

 UK Regulator Proposes Allowing Tokenised Funds to Attract Younger Investors

Britain’s Financial Conduct Authority (FCA) on October 14 proposed new rules to allow asset managers to tokenise their investment funds using public blockchains like Ethereum.
Up till now, UK funds have used private blockchain systems. The new plan would let funds issue digital tokens representing shares, enabling faster settlement, lower costs, and increased accessibility.
The FCA also opened a consultation on whether stablecoins might be used as settlement assets for those tokenised funds.
Simon Walls, an FCA markets executive, said the move is aimed at making investing more appealing and affordable to younger people who already prefer “fractional shares” in trading apps.
Big fund firms like BlackRock and Franklin Templeton are already exploring similar tokenisation initiatives.