The UK’s Investment Association (IA) published a second report for the Technology Working Group of the Government’s Asset Management Taskforce. Its first report outlined a baseline for what is achievable for fund tokenization within the current regulatory framework. The second report specifies two use cases that the industry will trial. Additionally, it wants to explore three other areas.
Most fund tokenization explores tokenizing the fund units. However, some asset managers also want to be able to invest funds in tokenized securities. This potentially could result in composable funds and greater customization. It’s not mentioned in the report, but the UK’s Schroders and Calastone have been exploring this as part of Singapore’s Project Guardian.
Another area for exploration is using on-chain cash for settlement. A third is the potential medium term use of public permissioned blockchains. The first report emphasized that to be regulatory compliant, asset managers need to stick to private blockchains.
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.
