The UK Financial Conduct Authority has introduced new guidance to support the adoption of tokenized funds. This marks a step toward integrating distributed ledger technology [DLT] into traditional asset management.

The regulator said firms can now use blockchain infrastructure within existing rules. It removes uncertainty around how tokenization fits into current frameworks.

The move is designed to make it easier for asset managers to adopt tokenization without requiring a complete overhaul of regulatory structures.

Direct-to-Fund model aims to streamline fund operations

A key part of the update is the introduction of an optional Direct-to-Fund [D2F] dealing model.

Under this structure, investors can transact directly with a fund…