CurveBlock
P2P platforms typically arrange loans directly between retail lenders and borrowers and operate under the FCA’s consumer credit and platform rules when applicable. Many P2P arrangements are structured as unregulated loans, but the FCA supervises platforms for disclosure, governance and anti‑money‑laundering controls. P2P lenders bear borrower credit risk and often face limited liquidity; in some cases the platforms provide a secondary market but these are not guaranteed.
Tokenised fund shares convert ownership interests—such as shares in a fund, company or SPV—into digital tokens. Whether these tokens are regulated depends on the economic rights they represent. If the tokens amount to transferable securities or collective investment schemes, they will fall within the FCA’s perimeter and be subject to prospectus, disclosure and conduct requirements. Legal title, voting rights and insolvency treatment vary with the legal wrapper and the custody model adopted by the platform.
Consumer protections differ materially. FSCS protection does not cover investment losses in normal circumstances, though it can apply to certain regulated services; custody failures and client money rules are subject to strict rules for regulated firms. The identity and solvency of intermediaries, segregation of assets, transparency of fees and secondary market arrangements are practical distinctions that shape risk.
Retail investors evaluating fractional routes should compare the regulatory perimeter, custody protections, liquidity mechanics and the nature of underlying legal rights. Clear, regulated disclosure and robust custody arrangements are central to evaluating tokenised or P2P products.