UK Blockchain Fund Tokenization Gains FCA Backing

October 10, 2025 — The UK Financial Conduct Authority (FCA) has unveiled a new UK blockchain fund tokenization roadmap, enabling asset managers to modernize fund operations using blockchain. The initiative aims to expand competition, improve efficiency, and strengthen the UK’s position as a global financial innovation hub.

FCA Roadmap Opens Path for Tokenized Funds

In its official statement, the FCA said tokenization offers a “transformational opportunity” for fund management. The plan outlines how asset managers can operate tokenized fund registers under the UK’s Blueprint model, which provides a simplified structure for dealing with both traditional and tokenized fund units.

According to Simon Walls, executive director of markets at the FCA, “Tokenization can fundamentally improve asset management, benefiting both investors and the broader market.” The roadmap also includes a framework for blockchain-based settlement and updated guidance on compliance within existing rules.

Efficiency, Access, and Competition Goals

The regulator believes that tokenized fund structures will reduce reconciliation costs, enable faster data sharing, and open investment access to a wider range of participants. Tokenization is expected to particularly benefit private market investors by lowering minimum entry thresholds and creating fractional ownership opportunities.

By embracing blockchain infrastructure, asset managers could gain efficiency in fund administration and compliance reporting, aligning with the FCA’s goal of building a digitally competitive financial hub in post-Brexit Britain.

Industry Pressure and Policy Shifts

The FCA’s tokenization initiative follows mounting calls from industry leaders like Coinbase, which launched a petition urging the UK government to craft a pro-innovation policy framework for blockchain and . Meanwhile, the Bank of England is considering easing its proposed limits on stablecoin reserves to support institutional participation.