UK FCA: New Rules for Tokenised Funds

2 June 2026

UK FCA: New Rules for Tokenised Funds

#UnitStakeInsights

A historic step within the existing framework

The UK, managing £16.5 trillion in assets, has taken a notable step toward tokenization. The Financial Conduct Authority (FCA) has approved new rules (PS26/7) allowing tokenized funds to operate within the existing regulatory framework. Here is what this means for the industry:

The 'Direct to Fund' (D2F) Model

The FCA is introducing a model for direct trades between investors and the fund. It is no longer necessary to issue units through an intermediary manager — tokens are issued or canceled directly against cash. This enables atomic settlement (the instant exchange of an asset for cash) directly on the blockchain.

Blockchain as the Primary Register

On-chain records are now officially recognized as the primary books for unit transactions. Companies are no longer required to maintain full, duplicating "mirror" off-chain records if they have an appropriate resiliency plan in place approved under the relevant rules. Within this regulatory framework, the technology has a defined legal basis for this use.

Standardization via the 'Blueprint'

The regulator supported the industry-led Blueprint model for launching tokenized funds (including UCITS). The first such fund was authorized back in January 2025, confirming the infrastructure's readiness for scaling.

The Future: Fees and Dividends

The FCA plans to explore allowing funds to use digital assets for non-investment purposes, such as covering gas fees on DLT networks, paying distributions, and settling transactions. This may narrow the gap between traditional finance and DLT.

The Bottom Line

The UK is creating a clear and practical legal framework. This is exactly what we support: tokenization is not a means of bypassing the law, but a rather method to make financial instruments more efficient and transparent within existing legal frameworks. Authorization applications for digital asset firms are expected to open starting September 30, 2026. This is a further step toward institutional adoption of RWA tokenization. This article is for informational purposes only and does not constitute investment advice.

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A historic step within the existing framework The 'Direct to Fund' (D2F) Model Blockchain as the Primary Register Standardization via the 'Blueprint'The Future: Fees and Dividends The Bottom Line

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