The UK’s Investment Association published an interim report for the Technology Working Group of the Government’s Asset Management Taskforce. It outlines a blueprint that allows asset managers to engage in fund tokenization now but in a constrained manner. However, it also provides a roadmap for broader DLT adoption enabling asset managers to reap the full benefits of tokenized funds.
Asset managers are eyeing tokenization activities in other jurisdictions and the potential massive cost savings from tokenization. Half of the £8.8 trillion ($11 trillion) UK fund industry manages assets on behalf of investors outside the UK.
“Fund tokenisation has great potential to revolutionise how our industry operates, by enabling greater efficiency and liquidity, enhanced risk management and the creation of more bespoke portfolios,” said Michelle Scrimgeour, Chair of the Working Group and CEO at Legal & General Investment Management.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
