LONDON : Britain's Investment Association on Thursday called for the government and regulators to give the green light to tokenised funds using blockchain technology, which could make it easier for retail investors to buy illiquid assets.
Tokenised funds split their assets under management into fractions, enabling a reduced minimum investment, making them more affordable for small investors.
The use of blockchain technology, which underpins cryptocurrencies, to support tokenised funds can also reduce operational costs, industry specialists say.
"With the ever-quickening pace of technological change, the investment management industry, regulator and policymakers must work together to drive forward innovation without delay," said Chris Cummings, chief executive of the Investment Association.
The government and the Financial Conduct Authority should establish a framework for tokenised funds to operate, the IA said in a statement.
Regulators should also assess the eligibility of...
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