UK Regulator Considers Exemption for Tokenized Gold to Boost Market Development
The UK's Financial Conduct Authority (FCA) is considering removing tokenized gold from the fund rulebook, which could ease its development and use in digital markets. Currently, uncertainty over whether tokenized gold falls under collective investment scheme or alternative investment fund rules has hindered growth. The FCA plans to propose a targeted exemption with the Treasury that would apply specifically to certain gold tokens or market infrastructure. The move aims to make London's bullion reserves more accessible for digital collateral and trading, as both major tokenized gold products—Tether Gold (XAUT) and Pax Gold (PAXG)—are issued offshore. The FCA also plans to consult on allowing clearing houses to accept tokenized assets like stablecoins in the Sterling Monetary Framework. Industry participants believe this could help London maintain its dominant position in global gold trading, currently at around 70%, amid competition from China's emerging bullion hub.
Topics: blockchain FCA gold UK financial policy