FCA Considers Tokenized Gold Regime to Boost Wholesale Markets

The UK's Financial Conduct Authority (FCA) is exploring a bespoke regime for tokenized gold products to facilitate their development in wholesale markets.

According to a report by the Financial Times, the FCA, along with the Bank of England and HM Treasury, is considering exempting tokenized gold from some fund rules.

This move aims to make it easier for digital gold to be divided and transferred across markets, potentially increasing its use as collateral in financial transactions.

Industry participants have warned that uncertainty over whether tokenized gold products fall under existing collective investment scheme or alternative investment fund rules could slow development and limit access for some investors.