This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Investment managers in the United Kingdom are being supported by regulators to utilize blockchain technology for the tokenization of funds. This move away from traditional record-keeping systems is seen as a step towards a more efficient and transparent financial industry. The Investment Association (IA) has published a report highlighting the rapid digitalization of financial services and the benefits of tokenization. The Financial Conduct Authority (FCA) has expressed its openness to exploring innovative solutions while also considering potential risks. The report proposes principles for implementing tokenized funds, emphasizing the importance of inclusivity and a focus on competitiveness and efficiency. The UK government has also expressed its support for this approach, signaling its commitment to fostering innovation in the asset management industry. Recent news has shown that investment firms in the UK are increasing their focus on digital assets, with a significant number of asset managers and hedge funds recruiting senior executives to oversee digital asset strategies.