Britain moves to become global leader in asset tokenization

The UK Financial Conduct Authority (FCA) outlined plans on Tuesday to support tokenization, aiming to foster innovation and growth in asset ￰1￱ FCA plans to provide firms with additional clarity to aid in the adoption of tokenization ￰2￱ FCA noted that Britain has around 2,600 asset management firms managing around 14 million euros of assets for UK and global ￰3￱ government agency said it’s committed to supporting innovation to help the tokenization sector continue to grow, as part of its ￰4￱ aims to support innovation in the tokenization sector Tokenisation has the potential to drive fundamental changes in asset management, with benefits for the industry and ￰5￱ want to provide asset managers with the clarity and confidence they need to deliver. ￰0￱ #FCAGrowth #FinancialRegulation — Financial Conduct Authority (@TheFCA) October 14, 2025 The FCA believes that the shift in how people invest in the future, including through tokenization—a digital representation of assets on distributed ledger technology—can help asset managers innovate and stay competitive in the ￰6￱ agency believes the initiative will help consumers access more cost-effective and personalized investments.

“Tokenization has the potential to drive fundamental changes in asset management, with benefits for the industry and ￰7￱ are many things that firms can do under our existing rules and more that become possible with the changes we propose enacting now.” – Simon Walls , Executive Director of Markets at the FCA According to the FCA, tokenization offers new opportunities to improve efficiency and lower fund management costs, particularly by streamlining data sharing and reconciliation among firms involved in operating or distributing ￰8￱ acknowledged that Britain is ready to design the next stage with the industry and that the report already suggests a path for the ￰9￱ added that the UK has the opportunity to be a world-leader, and the agency wants to provide asset managers with the clarity and confidence they need to ￰10￱ FCA proposed guidance on operating tokenized fund registers under the agency’s current rules through the UK Blueprint ￰11￱ also seeks a streamlined, alternative dealing model for fund managers to process the buying and selling of units in authorized funds, whether traditional or ￰12￱ financial regulator revealed that its proposal outlines a roadmap to advance fund tokenization and address key barriers, including the use of public blockchains and settling transactions entirely on the ￰13￱ FCA also plans to discuss how tokenization models could evolve and how regulation may need to ￰14￱ a bid to achieve these objectives, the agency joined hands with MAS, the Financial Service Agency of Japan (FSA), and the Swiss Financial Market Supervisory Authority (FINMA) UK banks launch pilot programs for tokenized deposits The Bank of England Governor Andrew Bailey stated last week that the UK is placing tokenization at the core of its digital finance strategy and will limit the use of ￰15￱ said tokenization is a more valuable innovation over stablecoins because it keeps money within the regulated banking ￰16￱ Cryptopolitan previously reported , some of the top banks in the UK, including HSBC, NatWest, and Lloyds, have already launched a pilot program using tokenized deposits for online marketplace ￰17￱ financial institutions plan to run the initiative until mid-2026 and explore applications in mortgage ￰18￱ Kohli, HSBC’s global head of payments solutions, said that the initiative aims to make tokenized deposits interoperable across ￰19￱ Lee, an analyst at UK Finance, argued that tokenized deposits are likely to be the way that a much wider tranche of financial institutions get involved in the crypto sector.

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