Headline: “Financial Conduct Authority backs ‘tokenised’ funds to attract younger investors”
Published: October 14, 2025 Reuters
Key points:
- UK’s FCA proposes to allow asset managers to issue tokenised funds on public blockchains (e.g., Ethereum) rather than just private chains. Reuters
- The goal: appeal to younger investors (18‑34) who favour trading apps, digital assets and less traditional fund formats. Reuters
- The regulator is also soliciting views on allowing stablecoins as settlement assets. Reuters
Why it matters: - This is a shift from crypto being “alternative / fringe” toward integration with mainstream finance and regulated investment vehicles.
- Tokenisation on public chains could bring benefits like transparency, lower costs, and faster settlement — but also new risks (smart contract, custody, regulatory compliance).
- Regulatory approval signals increasing institutional comfort with blockchain‑native formats.
What to watch: - How asset managers adopt tokenised funds: will they use public chains widely, or still stick to private/permissioned ledgers?
- Which jurisdictions follow the UK’s lead (or contrast with stricter regimes).
- The evolution of frameworks for custody, audit, investor protection in tokenised formats.