UK FCA releases guidance to support fund tokenization innovation

The Financial Conduct Authority (FCA) in the UK has released PS26/7 guidelines to support innovation in the field of fund tokenization and explain how companies can use distributed ledger technology (DLT) under existing rules. The new regulations introduce the Direct to Fund (D2F) model, allowing investors to trade directly with traditional or tokenized funds. The announcement states that tokenization using DLT to represent assets or asset ownership can help reduce costs and create more investment opportunities.