The UK is exploring blockchain for public funds, with share registration expected to be automated

On October 14th, the UK Financial Conduct Authority (FCA) sought public comment on a proposal to support the asset management and fund management industries in embracing tokenization. The proposal provides a compliant path for registering mutual fund units on a distributed ledger (DLT), aiming to reduce costs and increase efficiency in the asset management industry through blockchain technology. According to the draft, the FCA's proposed "blueprint model" allows fund managers to migrate their fund unit registration system to a blockchain without changing the core regulatory framework. Fund custody, valuation, disclosure, and investor protection requirements remain unchanged, but unit registration can be completed on a distributed ledger.