The Investment Association, which represents the interests of asset managers, has proposed the approval of token-based funds. This is reported by the Financial Times.

The authors of the initiative believe that its implementation will bring significant savings for investors and simplify the current procedures for trading mutual funds.

The association hopes to set up a task force to study how to do it. DLT-technology talented accelerate the creation of new products and services.

According to the publication, such blockchain funds could appear by the end of the second quarter of 2023. FCA confirms its existence.

Fund Admin Chain, a purpose-built fintech group, is currently partnering with the London Stock Exchange and four global asset managers.

“Tokenized funds can provide greater transparency, instant payments, and improvements in data and analytics. […] We need regulatory support to ensure the UK can compete with other jurisdictions.” Brian McNulty, head of Fund Management Chain, commented.

The investment association is also seeking permission from the FCA to allow traditional mutual funds to own cryptocurrencies and other digital assets.

We will remind you that Chris Philp, the UK’s minister of digital technologies, culture, media and sports, announced plans to transform the country into a “crypto centre”.

In March 2022, the Bank of England published a regulatory framework for cryptocurrencies focused on future financial stability risks.

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