Update, Sept. 14, 2026, 10:17 UTC: Added information from the UK FCA’s call for input and feedback statement.

The United Kingdom’s Financial Conduct Authority (FCA) is seeking feedback on whether certain tokenized gold products should be exempt from fund rules as regulators assess their potential use in wholesale markets.

In its call for input published Monday, the FCA said it is examining whether tokenization could improve how gold is traded, transferred, pledged and held in UK markets, including its potential use as wholesale collateral.

The review focuses on tokenized products that represent ownership of physical gold and provide transparent backing, clearly defined ownership rights and reliable redemption arrangements.

The consultation is open until Oct. 23. Responses could help determine whether the UK needs clearer guidance, targeted exemptions or a bespoke regulatory regime for tokenized gold. The FCA said uncertainty surrounding UK fund rules may be affecting the development of some use cases.

Tokenized gold classification could affect access

The FCA said uncertainty over whether certain tokenized gold products fall within the UK’s collective investment scheme (CIS) or alternative investment fund (AIF) perimeter could affect the development of specific use cases.

If a tokenized gold product is classified as a CIS or AIF, or if its classification remains unclear, this could affect whether some investors are willing or able to hold the token, the regulator said.

That classification question also matters for wholesale-market use cases because respondents identified collateral as the most frequently mentioned application for tokenization, including tokenized gold.

Depending on industry feedback, the FCA may consider several policy responses. These include clarifying existing rules, creating a recognized classification for specific regulatory purposes, and assessing targeted regulatory or legislative changes.

The regulator may also examine whether a bespoke regime for tokenized gold or tokenized commodities is necessary.

UK regulators advance wholesale tokenization work

The consultation was published alongside a feedback statement from the FCA and the Bank of England on tokenization in wholesale financial markets.

The regulators said they received 123 responses to a May call for input and that firms were generally supportive of the UK’s work on wholesale tokenization. Collateral was the most frequently mentioned use case, while respondents requested greater clarity on the eligibility of tokenized collateral, including tokenized money market funds, gold and stablecoins.

The FCA and Bank of England said they will publish a tokenization roadmap later this year containing details and target dates for each workstream.

London remains the world’s dominant over-the-counter gold market, accounting for about 70% of global notional trading volume, according to the World Gold Council.

The FCA had already been discussing a potential tokenized gold framework with banks and other market participants, Cointelegraph reported in August. The UK has also been developing stablecoin rules and testing digital pound interoperability in cross-border payments, according to Cointelegraph.

Source: Cointelegraph, https://cointelegraph.com/news/uk-fca-weighs-fund-rules-exemption-for-tokenized-gold-ft?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound