Jersey’s proposition as a hub for tokenisation and digital assets work has been highlighted in a number of key markets recently, as Jersey Finance has ramped up its efforts to position the jurisdiction as a leader in this space.
Most recently, around 200 finance and other professionals attended a Funds Focus Masterclass in London, hosted by Jersey Finance and entitled ‘Tokenisation Evolution and its Impact on Private Asset Fund Distribution’. At the event, speakers highlighted how tokenisation is creating new opportunities for alternative investment managers and how Jersey’s regulatory, legal and administration sectors are paving the way forward.
In addition, a number of other events were also held in October, including a series of networking events in Zurich and Geneva (in Switzerland) in conjunction with alternative funds industry body AYU and an event in New York, in conjunction with IFI Global, for US-based fund managers, lawyers and service providers. That event explored the rapid evolution in the digital assets landscape, the potential impact of tokenisation on fund accessibility and liquidity for US managers, and Jersey’s ecosystem for digital assets.
The raft of events follows the publication earlier this summer of some significant updated guidance by the Jersey Financial Services Commission (JFSC) on ‘The Tokenisation of Real-World Assets (RWA)’ and ‘Initial Coin/Token Offering (IC/TO). This has provided considerable additional clarity for asset managers and investors, and is supporting business growth in the sector.
Commenting on the recent range of activity, Elliot Refson, Head of Funds at Jersey Finance, said: “The publication of updated real world assets guidance earlier this year has shifted the dial for Jersey. Whilst our industry has been undertaking digital assets work for some time, this new guidance has prompted renewed interest in Jersey’s leadership in supporting this burgeoning sector.
“The guidance makes clear that, fundamentally, Jersey treats tokenisation in the same way as securitisation – an area where the Island has a strong track record and significant expertise – and not as an investment fund. This means that tokenisation vehicles (from a Jersey perspective) are out-of-scope of the Alternative Investment Fund Managers Directive, providing streamlined access to European investment, in a tax neutral environment. Those are the core messages we have been communicating to our core markets in the UK, Switzerland, Singapore and the US in recent months, and the response has been extremely positive.”
Joe Moynihan, CEO of Jersey Finance, added: “Jersey’s political and fiscal stability and its tax neutral environment have long been key elements of our financial services ecosystem. However, these qualities are coming to the fore in this new era of financial services, underpinned by blockchain technology. A huge amount of work has gone into nurturing this innovative platform to ensure that Jersey remains at the forefront of the digital asset space, and it’s vital that we continue to convey these messages to our audiences in key overseas markets.”
