UK FCA Advances Tokenization Strategy to Boost Asset Management Growth
The UK Financial Conduct Authority (FCA) has unveiled a strategic push to accelerate asset tokenization within the investment sector. Regulatory clarity aims to position Britain as a hub for blockchain-based financial innovation, with major banks already testing tokenized deposits.
Simon Walls of the FCA framed tokenization as transformative for market efficiency. "This technology redefines accessibility while cutting operational friction," he stated, noting distributed ledgers could unlock £4 billion in annual cost savings across UK funds by 2030.
HSBC, NatWest and Lloyds lead institutional adoption through deposit token pilots. The FCA's UK Blueprint model proposes standardized frameworks for tokenized fund registers - a MOVE expected to catalyze private market liquidity.
