UK Regulators Craft Framework for Tokenized Gold to Protect London's Dominance

The UK Financial Conduct Authority is creating a regulatory framework for tokenized gold to protect London's dominance in global bullion trading.

As part of this effort, regulators are consulting with industry members and big banks to digitize bullion ownership via blockchain digital twins.

Tokenized gold will have a 'digital twin' that represents ownership rights to real gold bullion, but it is distinct from Bitcoin and Gold ETFs in several ways.

The regulatory framework aims to clarify custody and security, boost crypto adoption and market growth across DeFi, DEX, and CEX ecosystems.