FCA Proposes Fund Tokenisation on Public Blockchains
The UK Financial Conduct Authority (FCA) has launched a consultation on fund tokenisation to foster a digital-first asset management system. The proposals include guidance for operating tokenised fund registers and an alternative on-chain dealing model for issuing and redeeming fund units entirely on public blockchains. By leveraging public-chain deployment, programmable compliance and whitelisted wallets, asset managers could achieve real-time settlement, enhanced transparency, automated on-chain compliance and lower reconciliation costs. The FCA estimates that fund tokenisation could broaden access to private markets and retail investors, drive innovation and reduce counterparty risk across the £14 trillion UK fund sector. Feedback is open until November 21 for accelerating tokenisation and December 12 for future models, with a policy statement and final rules expected in H1 2026.
Bullish
The FCA’s move to consult on fund tokenisation and public-blockchain dealing is bullish for the broader crypto ecosystem. In the short term, markets may react moderately as industry participants assess technical and legal requirements. Over the long term, a clear regulatory framework for on-chain compliance, real-time settlement and programmable fund registers should drive higher institutional adoption, expand use cases for smart contract platforms and increase demand for blockchain infrastructure, supporting sustainable growth across key crypto assets.