The UK explores the on-chain public fund, with share registration expected to be automated

ChainCatcher news, according to Caixin reports, the UK's Financial Conduct Authority (FCA) is seeking opinions on a proposal to support the asset management and fund industry in embracing "tokenization."

The proposal provides a compliant pathway for the registration of public fund shares on distributed ledger technology (DLT), aiming to reduce costs and improve efficiency in the asset management industry through blockchain technology. According to the consultation paper, the "blueprint model" proposed by the FCA allows fund managers to migrate the registration system of fund shares to the blockchain without changing the core regulatory framework. The requirements for fund custody, valuation, information disclosure, and investor protection remain unchanged, but the registration of shares can be completed through a distributed ledger.