UK Asset Managers Pioneer Fund Tokenization

Four of the top five UK asset managers have made significant progress in fund tokenization, according to the Tokenization Insight newsletter.

In July, Aviva Investors launched a tokenized share class of an existing fund and Schroders received regulatory approval for its first tokenized share class of a US dollar money market fund.

The new share class allows eligible investors with digital wallets to access the funds' assets held by The Bank of New York Mellon. Mark Versey, Aviva Investors' chief executive, said this marks a significant step forward in the firm's innovation agenda.

Similarly, Schroders received regulatory approval from the Central Bank of Ireland and will use Kinexys by J.P. Morgan's multi-chain asset tokenization platform to execute redemptions and transfers via smart contracts.