FCA Advances Tokenisation in Asset Management, Retail Impact Unclear

The Financial Conduct Authority (FCA) is pushing forward with plans to integrate tokenisation into the UK's £14 trillion asset management sector. The regulator aims to foster innovation and operational efficiency through digital asset adoption, though benefits may skew toward institutional players initially.

Tokenisation could reduce costs, streamline fund operations, and widen access to private markets—potentially trickling down to retail investors. However, industry experts like EC Markets' Matthew Smith note retail participation hinges on improved education and awareness, as most lack the expertise to evaluate tokenised securities independently.

London's tradFi-meets-crypto landscape continues evolving, with the FCA positioning the UK as a competitive hub for asset managers leveraging distributed ledger technology. The MOVE follows global trends where institutions like Binance and Coinbase have pioneered crypto-native investment products.