UK Investment Association Approves Fund Tokenization to Enhance Efficiency and Competitiveness in Asset Management Industry

The Investment Association has given the green light for fund tokenization in the UK's investment sector, which is a significant development. This move, which was approved by a government working group in collaboration with the UK Treasury and the Financial Conduct Authority (FCA), aims to utilize blockchain">blockchain technology to enhance efficiency, transparency, and global competitiveness in the investment management industry. A blueprint for implementation has been released, which presents a clear model for integrating tokenization within the existing legal and regulatory framework. This initiative allows FCA-authorized funds to engage in tokenized sales and redemption transactions, subject to certain criteria being met.