The FCA published guidance on fund tokenisation that lets firms use distributed ledger technology within existing rules and adds a Direct to Fund model.
The UK Financial Conduct Authority has published new guidance that opens the door for tokenized funds without waiting for a separate regulatory regime.
The FCA said firms can use distributed ledger technology within its existing rules and that the guidance includes an optional Direct to Fund dealing model for authorised funds. The regulator said tokenisation could reduce costs and improve efficiency in asset management.
The update matters because it gives asset managers a clearer path to experiment with tokenised products under current rules rather than waiting for a broader overhaul. It also signals that the FCA wants to support innovation while staying inside the existing framework.
Same-day coverage from MLex and Investment Week described the move as a notable milestone for fund tokenisation in the UK.
The immediate question is how quickly asset managers adopt the guidance and whether any firms use it to launch live tokenised funds or new on-chain settlement models.
Revision note
Initial automated publication.