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UK blockchain fund tokenization roadmap lets asset managers use blockchain to cut costs, boost efficiency, and expand investment access.
Author: Akshat Thakur
Published On: Tue, 14 Oct 2025 16:22:41 GMT
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.
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.
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.
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 stablecoins. Meanwhile, the Bank of England is considering easing its proposed limits on stablecoin reserves to support institutional participation.
Earlier this month, the FCA also lifted its ban on crypto exchange-traded notes (ETNs), reversing a 2019 decision and signaling a more progressive stance toward regulated digital assets.
Analysts from the Official Monetary and Financial Institutions Forum (OMFIF) previously criticized the UK for falling behind in blockchain adoption. The new tokenization roadmap represents a response to those concerns, positioning the country alongside global peers like Singapore, Hong Kong, and the UAE in regulatory innovation.
If effectively implemented, the FCA’s framework could establish London as a hub for institutional-grade blockchain finance, bridging traditional asset management with on-chain efficiency.
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JUST IN🚨 The UK's FCA has proposed allowing fund managers to tokenize investment funds.🇬🇧 https://t.co/kh5sW2zbJp
🚨 BREAKING: The Financial Conduct Authority in the UK, has proposed that investment funds can be tokenised by Fund Managers 🇬🇧 https://t.co/qeCGdhyk6N
JUST IN: 🇬🇧 UK's FCA proposes tokenising funds on public blockchains like #Ethereum to boost innovation and attract younger investors. https://t.co/KWjpQP4etZ
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