UK regulators to prepare tokenized gold framework: Report

The UK’s Financial Conduct Authority is reportedly preparing a regulatory framework for tokenized gold, according to Cointelegraph. The work would address how tokenized gold products could be used as collateral assets in wholesale markets.

Tokenized gold generally refers to digital tokens designed to represent an interest in physical gold or gold-backed holdings. A framework focused on collateral use would concern wholesale market activity, where financial institutions use assets to support trading, lending and other transactions.

The reported initiative would place tokenized commodities within the FCA’s broader remit as the UK develops rules for digital-asset activity. Clearer treatment of tokenized gold could help market participants understand the regulatory expectations attached to using such products in wholesale financial arrangements.