UK Financial Conduct Authority Clears Blockchain-Based Fund Registers Under Existing Rules

The Financial Conduct Authority (United Kingdom financial regulator) said asset managers can use blockchain for fund registers and process subscriptions onchain without separate experimental structures.

Summary

The Financial Conduct Authority (United Kingdom financial regulator) has cleared asset managers in the UK to maintain fund registers on blockchain and handle fund subscriptions onchain under existing rules. The move gives tokenized funds a clearer regulatory route, removing the need for separate experimental frameworks. In practice, this means managers can use distributed ledger infrastructure for recordkeeping and investor processing while remaining within the current regulatory perimeter, a step that could lower operational friction for tokenized fund structures.

Terms & Concepts
  • Blockchain: A shared digital ledger that records transactions across a network, allowing data such as ownership records to be updated transparently and securely.
  • Onchain: Processed directly on a blockchain network rather than through off-chain databases or manual systems.
  • Tokenized funds: Investment funds whose units or ownership records are represented digitally on blockchain infrastructure, often to streamline administration and transfer processes.