The Investment Association, a trade body which represents investment management firms in the UK, seeks the approval of blockchain traded funds which would issue digital tokens for the investors.
United Kingdom’s managers are persuading the government for a new fund category that uses blockchain technology, which aims at saving costs by using digital blockchain ledgers for greater efficiency in buying and selling mutual funds, reported the Financial Times.
The asset managers are also pushing for a new task force to investigate how blockchain technology might facilitate new products and services, while also allowing investors to customise their portfolios with holdings in private companies and cryptocurrencies.
Investment Association’s chief executive, Chris Cummings, stated its vital for policymakers, regulators and investment industry participants to work together for driving forward innovation without much delay.
Chris Cummings said, “Greater innovation will boost the overall competitiveness of the UK funds industry and improve the cost, efficiency and quality of the investment experience”.
The blockchain traded funds are expected to be rolled out by the second quarter of 2023 if the regulatory approval was expedited by the Financial Conduct Authority (FCA).
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