UK Releases a New Report on Fund Tokenization

A recent report by the Technology Working Group, part of the UK’s Treasury, has explored the possible applications of fund tokenization.

The report specifically looked at the use of tokens as collateral for money market funds and their potential role in onchain investments.

According to the report, the UK’s asset management sector has the opportunity to benefit from the advantages of tokenization. It also outlined a foundational tokenization model that firms in the UK can adopt.

The report provided examples of how this model can improve business operations for firms, such as optimizing collateral management for money market funds.

This is the second report from the Technology Working Group, which was established in April 2023 under the Asset Management Taskforce. The group plans to release a third report focusing on the impact of artificial intelligence on the industry.