The UK’s Financial Conduct Authority (FCA) has formally approved new rules allowing asset managers to tokenize funds using blockchain technology within the existing regulatory framework, marking a significant step toward integrating digital assets into mainstream finance. In a policy statement published Thursday, the FCA outlined a clear path for firms to maintain investor records on distributed ledger technology (DLT) and offer a Direct-to-Fund dealing model, aiming to improve efficiency without altering existing investor protections.
FCA policy statement PS26/7 opens door for onchain fund registers
The FCA’s policy statement, PS26/7, confirms that authorized funds can use public blockchain networks to maintain their unit registers, provided appropriate resiliency plans are in place. The regulator stated that onchain transaction records can serve as the primary books for unit deals without requiring a full off-chain duplicate. This follows the industry-developed ‘Blueprint’ model, which has already been used to authorize the first tokenized UK UCITS funds. The move is part of a broader digital assets roadmap first outlined in a January 2025 letter to the prime minister, aimed at modernizing market infrastructure while keeping tokenized finance within the regulatory perimeter.
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Twenty One Capital shares surge after Tether proposes three-way merger
Shares in Bitcoin-buying company Twenty One Capital (XXI) rose sharply in after-hours trading Wednesday after majority shareholder Tether proposed a merger with Bitcoin payments firm Strike and Bitcoin miner Elektron Energy. Tether stated it intends to vote in favor of the initial merger between Twenty One Capital and Strike, followed by a merger with Elektron Energy. Tether noted that Strike would contribute a profitable financial services platform with global distribution and regulatory infrastructure, while Elektron would add large-scale Bitcoin mining capabilities. Shares ended regular trading down 1.7% at $7.83, but jumped to $9.28 after hours before settling at $8.35, a gain of 6.6%.
Visa expands stablecoin settlement pilot to nine blockchains
Global payments giant Visa has added Polygon, Base, and three other blockchain networks to its stablecoin settlement pilot, bringing the total number of supported chains to nine. The pilot, launched in 2023, allows partners to settle transactions using stablecoins instead of traditional banking rails. Newly supported networks include Polygon, Base, Canton Network, Arc, and Tempo, joining Ethereum, Solana, Stellar, and Avalanche. Visa reported the program has reached an annualized settlement run rate of approximately $7 billion, growing about 50% quarter over quarter, though volume remains small compared to its core payments business. The initiative evaluates whether stablecoins can offer faster settlement, 24/7 availability, and cross-border payment efficiencies.
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Conclusion
These three developments underscore the accelerating integration of blockchain technology into regulated financial infrastructure. The FCA’s approval provides a regulatory blueprint for tokenized funds that other jurisdictions may follow, while the proposed Tether-Strike-Elektron merger signals consolidation in the crypto sector. Visa’s continued expansion of its stablecoin pilot demonstrates growing institutional interest in blockchain-based payment rails. Together, these events reflect a maturing industry moving toward regulatory compliance and operational scale.
FAQs
Q1: What does the FCA’s new policy mean for tokenized funds in the UK?
A1: The FCA’s PS26/7 allows authorized funds to use blockchain for investor records and unit dealing within existing regulations, without requiring a separate experimental structure. This provides a clearer path for asset managers to integrate DLT into regulated operations.
Q2: How will the proposed Tether-Strike-Elektron merger affect Twenty One Capital shareholders?
A2: If approved, Twenty One Capital shareholders would see their company merge with Strike and then with Elektron Energy, creating a combined entity with Bitcoin payments, mining, and financial services capabilities. Tether, as majority shareholder, has indicated it will vote in favor.
Q3: Why is Visa adding more blockchains to its stablecoin settlement pilot?
A3: Visa is expanding to evaluate whether stablecoins can improve settlement speed, reduce costs, and enable 24/7 cross-border payments. The pilot now includes nine blockchains, reflecting growing institutional interest in crypto-based payment infrastructure.
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