Tokenisation Hub
Engine members who could help firms implement the Fund Tokenisation Blueprint
Tokenisation
Tokenisation is the process of converting real-world assets—such as real estate, stocks, or bonds—into digital tokens. These tokens are securely recorded on a blockchain, ensuring transparency, traceability, and efficient transactions. Financial institutions are increasingly drawn to tokenisation due to its potential for liquidity, accessibility, and streamlined processes.
Creation, issuance, and management of digital assets will unlock new opportunities for growth, efficiency, and innovation within Investment Management. Tokenisation can improve the liquidity of assets, reduce costs, and increase transparency and security.
Meet the Engine members at the forefront of Tokenisation:
Tokenbridge Limited
LiCuido Limited
Custodiex Ltd
Tokenovate
FAC
UK Fund Tokenisation: A Blueprint for Implementation
The IA’s ‘Investment Fund 3.0’ era has now arrived – fund tokenisation is permitted within the UK. This report from the Technology Working Group of the Asset Management Taskforce outlines an implementation plan for the tokenisation of the UK investment funds industry whose full value chain is operated on DLT.
This report from the Technology Working Group of the Asset Management Taskforce details the first phase of its work on harnessing the potential of innovative technologies for the UK asset management industry.
This report focuses on the application of distributed ledger technology (DLT) through investment fund tokenisation, which presents a strategic opportunity to improve efficiency, transparency, and the international competitiveness of the UK’s investment sector.
Further Fund Tokenisation: Achieving Investment Fund 3.0 Through Collaboration
Building on the success of the implementation blueprint for the tokenisation of UK investment funds, the Technology Working Group of the Government’s Asset Management Taskforce has published its second report, which sets out the UK regulators’ support for investment management firms deploying fund tokenisation.
While firms are already able to implement fund tokenisation strategies that are in line with the regulator-approved model from the first phase of work announced in November, the Financial Conduct Authority (FCA) and HM Treasury (HMT) have now offered support through appropriate channels for other use cases, including funds being able to hold digital securities and the collateralisation of money market funds. The Government has also committed to consider whether and how Distribution Ledger Technology (DLT) might be applied to a UK sovereign debt instrument.
Recognising that collaboration offers the optimal route for success at pace, especially where multiple different parties may be involved, including regulators, the Investment Association (IA) has offered to facilitate a number of use cases over the coming months.
Feedback from industry on the first phase’s report, which established a blueprint for implementation, focused on the practical applications of DLT and identified priorities for the development of the baseline model. The Group has therefore suggested next steps which are allowing for on-chain settlement via digital money, holding tokenised assets in portfolios and the possibility of expanding the scope of solutions to public permissioned networks. The report also provides the current view on technical standards and interoperability and a model fund prospectus for firms ready to deploy tokenisation under the existing regulatory model.
