According to the UK Financial Conduct Authority, asset managers can use blockchain-based fund registers and onchain subscription processes under existing rules, while an optional Direct to Fund model aims to streamline subscriptions and redemptions.
The UK Financial Conduct Authority said asset managers may use distributed ledger technology, including blockchain-based fund registers, for fund tokenization under the existing regulatory framework. It also introduced an optional Direct to Fund, or D2F, model intended to improve subscription and redemption efficiency. The guidance gives tokenized funds a clearer regulatory path for recordkeeping and investor processing without requiring a separate experimental regime, as part of the UK asset management digital assets roadmap.