UK financial regulator mulls improving tokenization, asset management

The United Kingdom’s Financial Conduct Authority (FCA) released a discussion paper seeking ways to improve asset management in the country. Titled “Updating and Improving the U.K. regime for asset management,” the 49-page document contained a lengthy section on relying on tokenization.

Tokenization could be used to describe the right to issue participation rights in the funds as digital tokens via blockchain technology, according to the regulator. Under the definition, the FCA identified several benefits involving tokenization in asset management, including simplifying how units of funds are purchased.