Why Britain's Asset Managers Are Calling For Blockchain Funds Regime?
ndtv.comAbrdn is among major asset managers considering launching tokenised funds.
Britain's Investment Association on Thursday called for the government and regulators to give the green light to tokenised funds using blockchain technology, which could make it easier for retail investors to buy illiquid assets.
Tokenised funds split their assets under management into fractions, enabling a reduced minimum investment, making them more affordable for small investors.
The use of blockchain technology, which underpins cryptocurrencies, to support tokenised funds can also reduce operational costs, industry specialists say.
"With the ever-quickening pace of technological change, the investment management industry, regulator and policymakers must work together to drive forward innovation without delay," said Chris Cummings, chief executive of the Investment Association.
The government and the Financial Conduct Authority should establish a framework for tokenised funds to operate, the IA said in a statement.
Regulators should also assess the eligibility of cryptocurrencies in investment funds with well-diversifed portfolios, the IA added.
Abrdn is among major asset managers considering launching tokenised funds.
"We are looking at tokenisation and are currently assessing how the benefits of blockchain technology could be leveraged in the regulated funds space," an abrdn spokesperson said in an emailed statement.
"Tokenised solutions should provide new ways for both retail and sophisticated investors to access investment products, including in the illiquid space, thanks to lower investment minimums and improved liquidity mechanisms via secondary token markets."
Fund technology firm FundAdminChain is working with the London Stock Exchange and four
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