# Technology Working Group publish second fund tokenisation report

Source: https://www.gov.uk/government/news/technology-working-group-publish-second-fund-tokenisation-report
Kiwi News: https://news.kiwistand.com/stories/Technology-Working-Group-publish-second-fund-tokenisation-report?index=0x6604182c944fb1b3c2f87da8e0d61de8302fd16d417d0b85c7dc566ee3996a231c0bc192
Submitted by ciefa.eth on 2024-03-27 UTC, 1 upvote, 0 comments

## Summary

The Technology Working Group, chaired by Michelle Scrimgeour and supported by the Investment Association, published a second report on March 26, 2024, titled "Further Fund Tokenisation: Achieving Investment Fund 3.0 Through Collaboration." The report builds on the group's November 2023 first report and explores using tokens as collateral for money market funds, along with tokenised funds' role in a fully "on chain" investment market that streamlines back-office functions. Economic Secretary to the Treasury Bim Afolami welcomed the report, saying the UK is well placed to use technology in investment management. The group's third phase will focus on how the sector can harness artificial intelligence.

## Article

The City Minister’s industry group for examining the impact of technology on the UK’s investment management sector publishes its second report.

The Technology Working Group is chaired by Michelle Scrimgeour. It was established under auspices of the government’s Asset Management Taskforce and is supported by the Investment Association. The Technology Working Group have today, 26 March 2024, published a report on the second phase of its work: Further Fund Tokenisation: Achieving Investment Fund 3.0 Through Collaboration.

This new report builds on the publication of the Technology Working Group’s first report in November 2023, and expands the potential use cases of fund tokenisation first highlighted in that initial report. In particular, the report explores the use of tokens as collateral for money market funds, and the role tokenised funds play in a fully “on chain” investment market that will streamline back-office functionality.

Bim Afolami MP, the Economic Secretary to the Treasury, welcomed the progress set out in this report, saying:

I am delighted to welcome today’s report from the Asset Management Taskforce’s Technology Working Group.

As we work to grow the economy, the UK is ideally placed to seize on the transformative capabilities of technology in this industry, combining our expertise in innovation and investment management. This report demonstrates – once again – that the UK is on the side of the pioneers.

For the third phase of its work, the Technology Working Group will now shift their focus onto how the UK’s investment management sector can harness the opportunities presented by artificial intelligence.

Background

Tokenisation refers to the issuing of units that are recorded on a distributed ledger, as opposed to units that are recorded on more traditional systems of record-keeping. Transitioning the existing operational infrastructure underpinning investment funds onto a distributed ledger will drive further efficiency and transparency within the sector, and improve its competitiveness.

Technology Working Group members

Investment Association

HM Treasury

Financial Conduct Authority

EY

Legal & General Investment Management

Fidelity International

Baillie Gifford

Blackrock

JP Morgan Asset management

M&G

Schroders

Archax

Aquis Exchange

Augmentum

Calastone

CMS

Copperco

Galaxy Digital

Hargreaves Lansdown

Innovate Finance

London Stock Exchange Group

NEST

Northern Trust