UK’s FCA weighs bespoke framework and fund exemptions for tokenized gold - CoinDesk

The UK Financial Conduct Authority is reportedly considering a dedicated regulatory framework for tokenized gold, alongside possible exemptions for funds that hold the asset. Tokenized gold refers to digital tokens backed by physical bullion, designed to let investors gain exposure to gold with the transferability and divisibility of blockchain-based instruments. The FCA's review signals that UK regulators are weighing how existing securities and fund rules should apply to a product that sits between a commodity and a digital asset.

For markets, the key question is regulatory classification. If tokenized gold falls under a bespoke framework, issuers could face clearer requirements on custody, redemption, and disclosure, potentially making the product more accessible to institutional and retail investors. Fund exemptions, meanwhile, could affect how asset managers incorporate tokenized gold into portfolios without triggering full fund authorization rules.

What to watch: the scope of any exemptions, custody and audit standards for the underlying bullion, and whether the approach is mirrored in other jurisdictions. Clarity could support adoption; ambiguity tends to keep large allocators on the sidelines.