UK Treasury’s Technology Working Group Explores Fund Tokenization Potential

The UK Treasury’s Technology Working Group, operating under the government’s economic and finance ministry, has released a new report focusing on the potential applications of fund tokenization.

Investigating tokens as collateral for money market funds and their role in the onchain investment market, the report outlines how the UK funds industry can leverage tokenization to enhance asset management. It provides insights into adopting a foundational tokenization model, offering use cases that illustrate how firms can optimize business operations, particularly in money market fund collateral management.

This marks the second report from the Technology Working Group, established in April 2023 under the Asset Management Taskforce, with a forthcoming focus on the impact of artificial intelligence on the industry. The report builds upon the group’s initial publication in November 2023, further exploring the potential benefits of fund tokenization for enhancing efficiency, transparency, and competitiveness within the sector.

Clever Robot News Desk 28^th March 2024