Investment funds in the UK have received the green light to tokenize their funds.
The research, conducted in collaboration with the Ministry of Finance, the Financial Conduct Authority (FCA) and BlackRock, evaluated how tokenization could affect investment funds.
According to the statement of the Investment Association, which represents fund managers, tokenization of funds is efficiency, transparency And international competitiveness may provide benefits in these areas.
In the report published by the Ministry, FCA and BlackRock, details about how funds can be tokenized within the scope of current legislation were shared. Fund managers, these can start implementation directly.
Funds authorized by the FCA will be able to tokenize sales and redemption transactions. “Tokenizing funds has the potential to revolutionize our industry by increasing efficiency, liquidity and enabling better risk management,” said Michelle Scrimgeour, CEO of Legal and General Investment Management. said.