#EMIR

UK Financial Conduct Authority plans regulatory framework for tokenized gold

The UK's Financial Conduct Authority, Bank of England, and Prudential Regulation Authority have issued a joint vision paper confirming that tokenized gold can serve as collateral for over-the-counter derivatives trades. By integrating tokenized assets into the existing UK EMIR framework, regulators have established that digital tokens and their physical counterparts receive identical prudential treatment. This policy ensures that tokenized gold satisfies margin requirements without requiring new regulatory categories or special privileges. The initiative aims to modernize financial markets by increasing speed and flexibility through the adoption of digital ledger technology. This development aligns with broader UK efforts, including the Digital Securities Sandbox, where sixteen firms are currently testing tokenized asset issuance. Furthermore, the Bank of England is actively developing infrastructure to support direct ledger connectivity by 2027. By removing regulatory ambiguity, the UK is positioning itself to facilitate the institutional adoption of tokenized real-world assets within established financial systems.

cryptobriefing.com·3h ago