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

The UK Financial Conduct Authority is reportedly considering a bespoke regulatory framework for tokenized gold, along with potential exemptions for funds that hold the asset. Tokenized gold refers to blockchain-based tokens backed by physical bullion, designed to let investors gain exposure to gold with potentially faster settlement and lower operational friction than traditional channels.

For markets, the significance lies in how such products are classified. If regulators treat tokenized gold within existing fund rules, issuers may face familiar custody, disclosure, and investor-protection requirements. A dedicated framework, by contrast, could acknowledge the asset's hybrid nature — part commodity, part digital token — and clarify which rules apply to issuance, trading, and redemption.

What to watch: the scope of any fund exemptions, how custody of underlying bullion would be verified, and whether the approach is extended to other tokenized commodities. The FCA has not finalized its position, so the practical impact on UK market access and product design remains uncertain.