The UK FCA issues new regulations for tokenized funds, allowing public funds to issue shares on public blockchains.

BlockBeats News, May 1 — The UK Financial Conduct Authority (FCA) has issued new regulations for tokenized fund supervision, allowing funds to use blockchain and distributed ledger technology (DLT) for investor record-keeping and share management within the existing regulatory framework, promoting on-chain asset management.

According to the new regulations, authorized funds can deploy investor registers on public blockchain networks while meeting safety and transparency requirements, and allow fund shares to be issued across multiple blockchains. The FCA also introduces an optional “Direct-to-Fund (D2F)” model, where funds or custodians directly transact with investors to simplify on-chain settlement processes.

The FCA stated that the relevant rules have supported the approval of the first UK UCITS tokenized fund. In the future, they will explore the application of stablecoins, digital cash, and smart contracts in fund settlement, and plan to seek further opinions on the use of DLT in wholesale financial markets by 2026. The complete UK crypto asset regulatory framework is expected to be implemented by October 2027.

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