The UK has given the green light for authorized investment funds to implement tokenization in the investment sector. This move aims to enhance efficiency, transparency, and competitiveness within the industry. The initiative is a result of collaboration between the Technology Working Group of the government’s Asset Management Taskforce, the Financial Conduct Authority (FCA), and HM Treasury. The roadmap for tokenization outlines a phased approach, with the initial stage allowing FCA-authorized funds to utilize distributed ledger technology (DLT) for transactions and record-keeping. The model ensures compatibility with existing legal and regulatory frameworks and recommends specific criteria for tokenization. This includes holding mainstream assets and maintaining traditional valuation schedules and settlement timeframes. The roadmap also envisions future stages of tokenization that may involve broader technological advancements and the exploration of public ledgers and interoperability. Overall, this move towards tokenization is expected to bring about significant benefits for the investment industry, including enhanced efficiency, liquidity, risk management, and the ability to create more tailored investment portfolios.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Europe
Countries
Sentiment	positive
Relevance Score	1
People	Sarah Pritchard, Michelle Scrimgeour
Companies	Legal & General Investment Management, Financial Conduct Authority (FCA), The Investment Association, HM Treasury, Asset Management Taskforce
Currencies	None
Securities	None