UK Financial Conduct Authority Officially Backs Tokenization With New Regulatory Framework

Key Notes

• FCA proposals include streamlined dealing models for authorized funds and a roadmap addressing public blockchain barriers.
• Consultation period runs until November 21 with final discussions concluding by December 12.
• UK initiatives align with global tokenization growth including Binance’s RWUSD product and Ripple’s Dubai property custody services.

The UK’s Financial Conduct Authority (FCA) has officially announced its support for tokenization efforts throughout the country along with plans to provide guidance and additional regulatory clarity to firms in a bid to aid adoption.

Simon Walls, executive director of markets at the FCA, said in an Oct. 14 press release that upcoming changes to the UK’s existing rules would provide new benefits and avenues for tokenization to businesses operating within the country. Walls went on to say that the UK has the opportunity to be a world leader in tokenization and that the FCA wants to provide asset managers with “the clarity and confidence they need to deliver.”

Tokenisation has the potential to drive fundamental changes in asset management, with benefits for the industry and consumers.

We want to provide asset managers with the clarity and confidence they need to deliver.https://t.co/J4UI4oVfAR#FCAGrowth #FinancialRegulation

— Financial Conduct Authority (@TheFCA) October 14, 2025

Regulatory Clarity and The Path Forward

According to the press release, the FCA has submitted several proposals to existing guidance. These include providing further clarity for businesses operating tokenized fund registers under current FCA rules through the UK blueprint model, providing a streamlined, alternative dealing model for fund managers to process buying and selling of units in authorized funds, and developing a roadmap to advance fund tokenization and “address key barriers like using public blockchains and settling transactions entirely on the blockchain.”

The proposals, which can be viewed in PDF format on the FCA’s website, have been filed as consultation documents with the consulting period ending on Nov. 21 and the discussion scheduled to wrap up on Dec. 12.

Tokenization on The Rise Globally

The UK’s efforts to expand its digital assets footprint come amid a global surge in the proliferation of tokenization services and products from businesses and regulatory activity from lawmakers.

As Coinspeaker recently reported, cryptocurrency exchange Binance launched a principal-protected yield product called RWUSD to track the performance of real-world assets (RWA), including tokenized US Treasury bills.

In related news, Ripple and its partner Ctrl Alt teamed up in July to deliver custodial services for tokenized title deeds in Dubai, bridging the real estate and digital assets markets together.

Traditional financial institutions have gotten in on the tokenization trend as well. As Coinspeaker reported in July, Goldman Sachs and Bank of New York Mellon partnered up to offer mirrored tokenization services for money market fund investments.

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Tristan is a technology journalist and editorial leader with 8 years of experience covering science, deep tech, finance, politics, and business. Before joining Coinspeaker, he wrote for Cointelegraph and TNW.

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