IA-IMAS report highlights key considerations for aligning investor needs and growing digital asset adoption

• Report calls for the industry to work together on common standards and technology, helping digital finance grow while keeping investors safe.
• Both country’s investment industry associations are launching new collaborative work programmes and actively seeking partnerships to address potential gaps and share best practices.

The Investment Association (IA) and the Investment Management Association of Singapore (IMAS) today released a joint report examining the challenges and opportunities in tokenised asset markets across both jurisdictions.

The report, developed in collaboration with the Financial Conduct Authority (FCA) and the Monetary Authority of Singapore (MAS), highlights the adoption gap between technological innovation in digital assets and the practical requirements of investors. It provides a comprehensive operational readiness checklist for market participants looking to design and launch tokenised financial products.

Practical Framework for Market Development

The report draws on extensive industry consultation, including leading asset managers, custodians, and institutional investors from both jurisdictions, as well as input from consumer groups. It identifies five critical areas requiring attention – liquidity and secondary market access, custodial arrangements, operational changes to investor rights, consumer protections, and legal/regulatory considerations.

The operational readiness checklist covers product considerations, technical design, systems and controls, custody solutions, 24/7 availability, fees and pricing, scalability, and testing protocols. It is designed to help market participants navigate the transformation with confidence and consistency.

Next Steps and Industry Collaboration

Both associations are launching collaborative work programmes and actively seeking partnerships to address identified gaps and share best practices. The report calls for industry-wide engagement to develop standardised approaches and interoperable technology solutions.

The collaboration builds on existing initiatives including Singapore's Project Guardian and the UK's Investment Fund 3.0 Lab, demonstrating how regulatory clarity and industry innovation can advance digital finance while maintaining investor protection standards.

Chris Cummings, Chief Executive, IA, said: “We are proud to facilitate the rapid evolution of digital assets in the UK’s investment management industry, through both domestic initiatives such as our IF3 Lab, as well as collaboration with the FCA and global stakeholders, particularly in Singapore. It is important that regulation keeps pace with these shifts and we are pleased to be working with the regulator to create a framework that provides robust protections while enabling growth and innovation. By extending this collaborative spirit and fostering open dialogue to unlock tokenisation implementation, we can bridge the adoption gap of digital issuance globally as we shape the future of investment together.”

Carmen Wee, CEO, IMAS, said, “Tokenisation brings technology and investment closer together, but adoption at scale will only follow when investor needs are met. This Singapore–UK collaboration provides a practical, non-prescriptive checklist to move from pilots to production. IMAS is committed to representing the buy-side’s perspective and working with partners and regulators to develop interoperable practices that uphold market integrity and deliver better outcomes for investors.”

Simon Walls, Executive Director of Markets, FCA, said, "Tokenisation has the potential to play a transformative role in the future of financial services, helping firms meet the evolving expectations of tomorrow’s investors. This collaboration between global regulators and industry underscores our shared commitment to ensuring digital innovation is built on trust, confidence and resilience.”

Kenneth Gay, Chief FinTech Officer, MAS, said, "This collaboration between Singapore and the UK demonstrates how we can bridge the gap between tokenisation innovation and investor needs. Through Project Guardian and our partnership with the FCA, IA, and IMAS, we are building the foundation for scalable digital asset markets that serve all investor classes effectively. MAS remains committed to fostering responsible innovation that enhances the future of finance."

Read the full report here.