The chief executive of the UK’s Financial Conduct Authority has urged the fund management industry to invest in its tokenisation and digital assets capabilities to “lead” in Europe.
Speaking at TheCityUK’s annual conference 2025 today, Nikhil Rathi, told delegates the UK’s position as the largest fund management centre in Europe offered an opportunity.
“Could we lead on tokenisation?” he asked. “There is huge potential for the UK in this area, but it will require investment from firms.”
Rathi noted that the average age of an investor in an authorised fund is 55, “but younger investors want a digital first experience: apps, instant trading, 24/7”.
He noted how the FCA had have worked with industry, the Investment Association, and the Monetary Authority of Singapore through Project Guardian to develop proposals for fund tokenisation.
“An example of how we’ve long played a central role in shaping global standards,” he said. “That won’t change. But in today’s world, we must supplement our approach with stronger bilateral relationships.”
Rathi noted how the FCA has posted “a director in the Asia-Pacific region, as well as colleagues in Washington and Brussels, to help identify and realise opportunities, with more to come”.
“This is a moment of opportunity for the UK,” he said. “A chance to build on what makes us distinctive – talent, openness, integrity. And to do so with purpose and ambition.”
He noted that the FCA would work “at pace to keep markets clean, connected, confident”, and urged the industry to bring ideas, share insights and “keep challenging us to do better”.
“The UK financial services sector has real strengths and huge potential to grow further, but to stay ahead, we need collective confidence and action,” he said.
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