UK Regulators Draw Up Rules for Tokenized Gold

The UK Financial Conduct Authority (FCA) is working on a regulatory framework for tokenized gold, in collaboration with major banks and other industry participants.

This initiative aims to facilitate the use of digital representations of physical gold as collateral in wholesale markets, including uncleared over-the-counter derivatives.

The FCA's plans build on a joint policy paper from May 18, which identified tokenized gold as a possible form of collateral for these markets.