The British Technical Working Group releases a roadmap for the implementation of fund tokenization, which will allow qualified asset management companies to participate

The Technical Working Group of the UK Government Asset Management Working Group has released a roadmap for implementing tokenization of funds, providing a baseline model for implementing tokenization. According to an interim report published by the UK Investment Association, the model can be used within existing legal and regulatory frameworks and can be implemented immediately by investment managers. However, these funds must meet certain conditions to be eligible for tokenization. For example, mainstream assets must be included and valuations and settlements continue to be provided through the same processes and timeframes as traditional funds. Sarah Pritchard, executive director of markets and international at the UK Financial Conduct Authority (FCA), said the report identifies the way forward for tokenization and that there are no significant regulatory barriers to adopting the proposed benchmark model. (Finextra)