Britain’s asset managers want Blockchain traded funds

Investment Association proposes issuing digital tokens to investors instead of shares or funds

Financial District of the City of London, UK

Financial firms are adopting blockchain technology at a rapid pace. As part of this effort, Britain’s top asset management firms are pushing the government to establish a new fund class developed using blockchain architecture.

The trade body representing the UK’s asset management industry, the Investment Association, which manages close to $12 trillion in assets for clients worldwide, has asked the UK government for approval of blockchain-traded funds.

According to the association, blockchain ledger will be significantly cost-saving for investors and improve efficiency in trading by issuing digital tokens instead of traditional shares and funds.

The group has also proposed the creation of a task force to study how blockchain technology could accelerate the creation of new products and services, as well as allowing investors to add cryptocurrencies to their holdings.

“Greater innovation will boost the overall competitiveness of the UK funds industry and improve the cost, efficiency and quality of the investment experience,” says CEO of the Investment Association, Chris Cummings.

If approved by the Financial Conduct Authority (FCA), Blockchain-traded funds could be rolled out in the UK by the second quarter of 2023.