UK FCA Supports Tokenization With New Regulatory Framework and Guidance

The UK's Financial Conduct Authority (FCA) is supporting tokenization efforts and plans to provide regulatory clarity to boost adoption in the country.

  • Simon Walls, FCA's executive director of markets, stated that changes to UK rules will benefit businesses involved in tokenization.
  • The FCA aims to position the UK as a leader in tokenization by offering asset managers clear guidance.

Regulatory Clarity and The Path Forward

  • The FCA has proposed updates to existing guidance for businesses managing tokenized fund registers under current regulations.
  • Proposals include a streamlined model for fund managers and a roadmap to advance fund tokenization.
  • Consultation documents are available on the FCA website, with consultations ending on Nov. 21 and discussions concluding on Dec. 12.

Tokenization on The Rise Globally

  • Global interest in tokenization is increasing, with companies like Binance launching products like RWUSD, tracking real-world assets.
  • Ripple and Ctrl Alt have collaborated to offer custodial services for tokenized real estate deeds in Dubai.
  • Traditional institutions such as Goldman Sachs and Bank of New York Mellon are entering the tokenization market, providing services for money market funds.