UK investment fund has been approved for tokenization

UK investment funds have received approval for tokenization, according to UK trade body the Investment Association. The investment association said in a statement that fund tokenization has the potential to increase efficiency, transparency and international competitiveness in the investment management field. The initial phase, in partnership with HM Treasury, financial regulator the Financial Conduct Authority (FCA) and investment managers such as BlackRock, was launched today as part of the Government's Asset Management Working Group Roadmap Technical Working Group. The Tokenization of UK Funds – A Blueprint for Implementation report outlines a baseline model for tokenization that is designed to operate within the existing legal and regulatory framework and that businesses can implement immediately. The model allows FCA-authorized funds to adopt tokenization in sales and redemption transactions, as long as they meet certain criteria, such as the portfolio only containing mainstream investment assets and maintaining traditional valuation and settlement processes.