The British regulator has opened a public discussion on asset tokenization – Bits Media

UK Financial Conduct Authority (FCA) published a discussion document on methods, which can improve asset management, One of which is tokenization.

The regulator noted, that digital tokens and blockchain can be used for vesting the right to participate in funds. FCA counts, that the main advantage of tokenization will be to simplify the procedure for acquiring shares in funds. The invariability of funds about funds in distributed registers will eliminate the need to form an additional register of shares holders. Tokenization will also eliminate the need to attract third parties, which only complicate the process with additional fees, FCA noted.

“Tokenization can improve the effectiveness of means of means, Saving costs, By increasing the speed of transactions and eliminating potential administrative errors ", - indicated in the FCA document.

At the same time, the department indicated problems, which can occur with tokenized asset management. Primarily, These are strict rules, according to which companies may be prohibited from using a distributed register, as well as the risk of safety violations.

FCA suggested, that in the long run, As the blockchain in the wholesale market is deeply introduced, tokenization can become profitable for retail investors, which in this way can directly own the shares of funds. The regulator urged all interested parties to send comments, Reviews and suggestions on the document before 22 May.

Earlier, the management of Citibank said, that the tokenization of assets will become the future of the financial and payment industry. A few years ago, Circle Director General Jeremy Ellir (Jeremy allaire) I also stated, that this will increase the liquidity of corporate securities and other assets without systemic risks.