Fund tokenisation: A closer look

Fund tokenisation involves the issuance of digital tokens that represent interests in a fund. However, the function of the token and the associated legal rights can differ case-by-case, leading to different legal and regulatory consequences. In our latest client briefing, we consider how:

• Funds can be tokenised in different ways, depending on the chosen tokenisation structure.
• In certain existing structures, the token can serve primarily as an operational tool that augments (but does not replace) the conventional structure of the fund.
• Future implementations may go a step further, by replacing the core holding structure with a DLT-based alternative.

If you would like to discuss any of the issues raised in the briefing, please contact the author.