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British investment managers have been given approval to create tokenized funds, signaling a move towards utilizing blockchain technology in mainstream asset management. The Investment Association, the country’s trade body, has granted the green light for funds to be divided into smaller digital tokens backed by blockchain. However, these funds must still invest in traditional assets with unchanged valuation and settlement processes. This development has been met with enthusiasm from industry leaders, who believe that fund tokenization has the potential to revolutionize the sector by improving efficiency, liquidity, risk management, and portfolio customization. The initiative is part of the UK’s broader strategy to revitalize its asset management sector post-Brexit by leveraging innovative technologies. Tokenized funds are gaining traction globally, with the United States and Asia leading the way. A recent report by Calastone revealed that a significant percentage of firms in these regions are actively involved in fund tokenization projects. The future looks promising, as a separate survey by Calastone indicated that a majority of asset managers in the US and Asia plan to launch tokenized products within the next year. The UK’s entry into the tokenized funds space aligns with the global movement that is reshaping the asset management landscape by combining traditional finance with blockchain advancements.