UK Investors Left Out as Fundrise and Kraken Launch Onchain VCX Fund for Global Access

Conceptual Tokenisation Landscape

The tokenisation of venture capital funds is reshaping how investors access private markets. Recently, Fundrise and Kraken’s xStocks platform introduced an onchain version of the Fundrise Innovation Fund (NYSE: VCX), enabling global investors to trade a token representing shares in this venture capital vehicle. This development marks a significant milestone in the integration of traditional finance and blockchain technology. Yet, UK investors remain unable to participate in this opportunity, highlighting regulatory and market access challenges in the UK.

What Has Been Announced?

On 27 March 2026, Fundrise, a leading US alternative investment platform, partnered with Kraken’s tokenised equities platform xStocks to launch VCXx. This token represents the Fundrise Innovation Fund, a publicly traded, closed-end venture capital fund listed on the New York Stock Exchange earlier that year. VCX holds a diversified portfolio of late-stage private technology companies, including SpaceX, OpenAI, Anthropic, and Databricks.

VCX itself is not a cryptocurrency product. It is a traditional financial instrument with over $650 million in assets under management and more than 100,000 individual investors. The fund reported a one-year gross return of 63.27% ending January 2026. What xStocks has done is create a blockchain-based token fully backed by VCX shares. This token, VCXx, is issued by Backed Assets (JE) Limited and offered through Payward Digital Solutions, Kraken’s Bermuda-licensed entity.

This tokenisation allows eligible investors outside the United States to gain onchain exposure to the fund’s portfolio through a single tradeable token, simplifying access to high-growth private companies.

Why This Deal Matters for the Future of Tokenised Venture Funds

This development is important for several reasons:

• Bridging Traditional and Digital Finance

  VCXx represents the first time a publicly listed venture capital fund has been wrapped into an onchain asset. This bridges traditional stock markets and blockchain technology, offering investors the benefits of both worlds.

• Access to Private Market Growth

  Private technology companies like SpaceX and OpenAI have historically been difficult for retail investors to access. VCXx provides a new route to invest in these companies indirectly, with the liquidity and transparency of blockchain tokens.

• Global Reach with Restrictions

  While the token opens access to investors worldwide, UK investors are currently excluded due to regulatory constraints. This exclusion highlights the UK’s cautious stance on tokenised securities and the challenges it faces in adopting new financial technologies.

The UK’s Position in Tokenised Securities

The UK has been slower than some other markets to embrace tokenised equities. Regulatory uncertainty and investor protection concerns have led to restrictions on the sale of such products to UK residents. This cautious approach contrasts with jurisdictions like Bermuda, where Kraken’s Payward Digital Solutions operates under a licence that supports tokenised securities.

For UK investors, this means missing out on innovative investment vehicles like VCXx, which offer exposure to high-growth private companies through a regulated, transparent, and liquid token. The UK’s current regulatory framework limits the ability of platforms to offer these products domestically, keeping UK investors on the sidelines.

What This Means for Founders and Investors

For founders of private companies, tokenisation of venture funds can increase capital access and liquidity options. It also broadens the investor base beyond traditional venture capital firms to include global retail investors.

Investors gain a new way to diversify portfolios with exposure to private tech companies without the usual barriers of high minimum investments or complex private placements. The onchain nature of VCXx also offers benefits such as faster settlement, transparency, and potentially lower fees.

However, UK investors should be aware of the current limitations and monitor regulatory developments that may open access to tokenised securities in the future.

No Access in the UK just yet.

Looking Ahead

The launch of VCXx by Fundrise and Kraken signals a growing trend towards tokenising traditional financial assets to improve accessibility and efficiency. As regulatory frameworks evolve, more investors worldwide, including those in the UK, may gain access to these innovative investment options.

For now, UK investors should stay informed about regulatory changes and consider alternative routes to private market exposure. Founders and investors alike should watch how tokenisation reshapes venture capital and private equity markets, potentially unlocking new opportunities for growth and participation.

The tokenisation of VCX is a clear example of how blockchain technology can enhance financial markets. It offers a glimpse of a future where private market investments become more accessible, liquid, and transparent for a broader range of investors.

Disclaimer:

This article is provided for general information only and does not constitute legal, financial, or investment advice. The regulatory treatment of tokenised assets and digital securities varies by jurisdiction and continues to evolve. Readers should seek independent professional advice before making any financial, legal, or regulatory decisions.