UK FCA exploring regulatory exemptions for tokenized gold and considering tokenized assets as eligible collateral in sterling monetary framework.
DeFi & Yields ·
The UK's Financial Conduct Authority is exploring a tailored regulatory framework for tokenized gold that could include exemptions from collective investment scheme and alternative investment fund regulations, according to reporting. The FCA is collaborating with both the Treasury and the Bank of England on this initiative, though no final determinations have yet been reached.
In parallel, the Bank of England is evaluating whether tokenized assets—encompassing stablecoins and similar instruments—might serve as eligible collateral within its Sterling Monetary Framework. This consideration forms part of a broader exploration of how digital asset structures could integrate into existing monetary and regulatory systems.
The scope and timeline for any formal exemptions or collateral eligibility determinations remain unclear. The extent to which the three institutions will align on implementation, and whether any proposals will advance to formal consultation or rule changes, has not been disclosed.