The UK Research Association and South Korea's central bank will begin to apply blockchain technology through tokenization.
The United Kingdom and South Korea have separately outlined plans to implement tokenization, an emerging sector in the cryptocurrency and blockchain technology industry, which offers institutions and governments an opportunity to improve efficiency and security, ensure transparency and promote competitiveness.
In the UK, the Research Association (The Investment Association) will use tokenization to harness the disruptive potential of new technologies, such as blockchain, in order to open the doors to “investment funds 3.0”.
The organization published a report qualified “UK Fund Tokenisation – A Blueprint for Implementation”, which is focused on improving the value chain of investment funds through tokenization. This report recommends Start the implementation of tokenization in stages, starting with a limited opening of this innovation to fund managers and administrators.
According to the report, the digital money form of digital assets, digital identity and decentralization will increase the value chain of investment funds. The next steps proposed by the UK Research Association to implement tokenization in the British market include regulatory and legislative changes, as well as collaboration between the public and private sectors, with the aim of continuing to innovate in the blockchain industry.
On the other hand, from South Korea, the country's central bank is preparing to issue tokenized deposits as part of its trials of a wholesale CBDC for the South Korean won.
According to the central bank, commercial banks in the country will be able to issue and use tokenized bonds for interbank settlements, which will facilitate the entire settlement process, improving transparency and efficiency. In addition to this, the South Korean central bank is also considering building a test carbon credit market, to test its wholesale digital currency.
A path to expanding tokenization adoption
Recent plans unveiled by both the UK and South Korea outline a clear path to accelerate the adoption of new technologies.
Through tokenization, the UK hopes to make significant progress in the financial technology environment, to meet the long-term investment needs of investors in the 21st century and to build new models that foster innovation and development of blockchain technology.
Through tokenization, the UK is also seeking to further consolidate its position as a global hub for digital asset innovation.
Meanwhile, South Korea continues to ramp up its efforts to embrace disruptive innovation in the crypto/blockchain industry, in order to improve its financial services and accelerate the nation’s economic development. Regarding digital currencies, South Korea is exploring a CBDC as a new form of digital money that better suits the needs of the country and its citizens and can move forward into the new digital frontier.
Continue reading: Calastone exposes the interest of managers in Asia and the United States in tokenization
