The UK’s Financial Conduct Authority (FCA) has officially approved new rules allowing fund managers to use blockchain technology within existing regulatory frameworks, marking a significant step toward mainstream adoption of tokenized assets. The policy statement, published Thursday, provides a clear pathway for integrating distributed ledger technology (DLT) into regulated fund operations without requiring separate experimental structures.
FCA clears path for onchain fund registers
In its policy statement PS26/7, the FCA confirmed that firms can maintain investor records on DLT using the industry-developed “Blueprint” model. This means onchain transaction records can serve as the primary books for unit deals, provided firms have “appropriate resiliency plans” in place. The regulator stated that the Blueprint has already been used to authorize the first tokenized UK UCITS funds, and that authorized funds can operate on public DLT networks if controls meet FCA standards.
Also read: Bermuda to move key financial services onto Stellar blockchain, premier says
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 preserving existing investor protection frameworks. By bringing tokenized finance into the regulatory perimeter, the FCA seeks to prevent parallel, unregulated systems from developing.
Twenty One Capital surges on proposed three-way merger
Shares in Twenty One Capital (XXI) climbed in after-hours trading Wednesday after majority shareholder Tether proposed a merger with Bitcoin payments company Strike, followed by a subsequent merger with Bitcoin mining firm Elektron Energy. Tether stated it intends to vote in favor of both proposals, which would combine Strike’s financial services platform and regulatory infrastructure with Elektron’s large-scale mining operations.
Twenty One Capital shares ended regular trading down 1.7% at $7.83 but jumped to a high of $9.28 after hours before settling at $8.35, a gain of 6.6%. The proposed deal highlights ongoing consolidation in the crypto sector as companies seek to build vertically integrated operations spanning payments, mining, and investment vehicles.
What the merger means for the market
If completed, the combined entity would bring together a profitable payments platform, global distribution capabilities, and substantial Bitcoin mining infrastructure. The proposal reflects a trend toward larger, more diversified crypto corporations capable of competing with traditional financial institutions.
Visa expands stablecoin settlement pilot to nine blockchains
Global payments giant Visa has expanded its stablecoin settlement pilot to include Polygon, Base, the Canton Network, Arc, and Tempo, bringing the total number of supported blockchains to nine. The pilot, launched in 2023, allows partner institutions to settle transactions using stablecoins instead of traditional banking rails.
According to Visa, the program has reached an annualized settlement run rate of approximately $7 billion, growing about 50% quarter over quarter. Despite this growth, volume remains small compared to Visa’s core payments business. The initiative aims to evaluate whether stablecoins can offer faster settlement, 24/7 availability, and greater efficiency in cross-border payments.
Conclusion
Thursday’s developments underscore the accelerating integration of blockchain technology into mainstream finance. The FCA’s regulatory clarity provides a template for other jurisdictions considering tokenized asset frameworks, while corporate moves like the Tether-Strike-Elektron merger and Visa’s continued blockchain experimentation signal growing institutional confidence in digital asset infrastructure.
FAQs
Q1: What does the FCA’s new policy mean for UK fund managers?
It allows them to use blockchain for maintaining investor records and processing unit deals within existing regulatory frameworks, without needing separate experimental structures. This could reduce costs and improve efficiency.
Q2: Why did Twenty One Capital shares rise after hours?
Majority shareholder Tether proposed a three-way merger with Strike and Elektron Energy, which investors viewed positively as a move to create a more vertically integrated crypto company.
Q3: How does Visa’s stablecoin pilot work?
Visa’s pilot allows partner institutions to settle transactions using stablecoins on supported blockchains, offering faster settlement and 24/7 availability compared to traditional banking rails. The program now supports nine blockchains including Ethereum, Solana, Polygon, and Base.
Be the first to comment