The UK Treasury Department's technology working group has released a new report on fund tokenization. This new report builds on the initial report released by the working group in November 2023 and expands on the potential use cases for fund tokenization that were first highlighted in the initial report. Specifically, the report explores the use of tokens as collateral for money market funds and the role of tokenized funds in the fully on-chain investment market.In the third phase of their work, the technology working group will now focus on how the UK investment management sector can leverage opportunities presented by artificial intelligence.