FCA Signs Off Rules to Bring Tokenized Funds into UK Regime
The UK's FCA has approved new rules to integrate tokenized funds into the existing regulatory framework.Summary
The Financial Conduct Authority (FCA) has released policy statement PS26/7, establishing a framework to integrate tokenized funds and distributed ledger technology (DLT) into the UK's existing asset management regime. This move aims to modernize market infrastructure and support innovation without compromising investor protection.
The new rules allow firms to use the "Blueprint" model, where on-chain transaction records serve as primary books for unit deals. A key innovation is the optional "Direct-to-Fund" (D2F) dealing model, which enables more efficient settlement by allowing investors to trade directly with the fund or its depositary.
Looking forward, the FCA envisions a roadmap transitioning from tokenized funds to tokenized assets and cash flows. The regulator remains open to allowing digital cash and stablecoins for settlement and plans to seek further views on the wider use of DLT in wholesale markets in 2026.
(Source：Cointelegraph)