The Financial Conduct Authority (FCA) has announced support for the use of tokenisation in asset management, describing it as a step toward improving efficiency, transparency, and innovation in the UK’s financial sector. The announcement was made in an official press release on 14 October 2025.
Tokenisation allows traditional financial assets to be represented digitally on distributed ledger technology (DLT). According to the FCA, this development could help firms modernise fund structures and improve investor access, while remaining within existing regulatory safeguards.
The regulator’s statement follows growing interest in blockchain applications across mainstream finance. It confirmed that tokenisation projects must still comply with current rules on risk management, custody, and investor protection.
The FCA said it will continue to work with the Treasury and industry participants to ensure the UK remains a competitive environment for responsible digital innovation in financial services.
