FCA Allows Tokenized Funds to Operate Under Existing UK Rules

The Financial Conduct Authority (FCA) has released policy statement PS26/7, which permits tokenized funds to function under the United Kingdom's current fund regulations rather than separate experimental frameworks. According to NS3.AI, this guidance enables firms to utilize distributed ledger technology (DLT) for investor records through the Blueprint model. It also allows onchain transaction records to serve as the primary books for unit transactions, provided that resiliency plans are in place. PS26/7 introduces an optional Direct-to-Fund dealing model and allows for potential waivers on digital cash and stablecoin settlements. The broader UK cryptoasset framework is expected to be finalized by October 2027.