UK-Singapore Report: Five Critical Areas for Tokenized Assets
The UK and Singapore's asset management industry associations have launched a report examining the challenges and opportunities in tokenized markets.
The UK’s Investment Association (IA) and the Investment Management Association of Singapore (IMAS) have released a joint report on the tokenized asset markets across both jurisdictions.
According to the report, which was developed in collaboration with the Financial Conduct Authority (FCA) and the Monetary Authority of Singapore (MAS), there are five critical areas that require attention. They include liquidity and secondary market access; custodial arrangements; operational changes to investor rights, consumer protections; and legal or regulatory considerations.
The report also contains an operational readiness checklist that covers product considerations, technical design, systems and controls, custody solutions, 24/7 availability, fees and pricing, scalability and testing protocols.
Next Steps for Progress
To further advance the market, the IA and IMAS are launching collaborative work programs and actively seeking partnerships to address identified gaps and share best practices. This is in addition to existing initiatives, including Singapore's Project Guardian and the UK's Investment Fund 3.0 Lab.
«Tokenization has the potential to play a transformative role in the future of financial services, helping firms meet the evolving expectations of tomorrow’s investors. This collaboration between global regulators and industry underscores our shared commitment to ensuring digital innovation is built on trust, confidence and resilience,» said Simon Walls, FCA’s executive director of markets.
«Through Project Guardian and our partnership with the FCA, IA, and IMAS, we are building the foundation for scalable digital asset markets that serve all investor classes effectively,» added Kenneth Gay, chief fintech officer at MAS.
