UK FCA seeks views on fund rule exemptions for tokenized gold

[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 some tokenized gold products should be exempt from fund rules as regulators examine their use in wholesale markets.

In a call for input published Monday, the FCA said it is looking at 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 have transparent backing, clearly defined ownership rights and reliable redemption arrangements.

The consultation is open until Oct. 23 and could determine whether clearer guidance, targeted exemptions or a bespoke regime is needed for tokenized gold, after the FCA said uncertainty around UK fund rules may affect the development of some use cases. 

Tokenized gold classification affects access

The FCA said uncertainty around whether some tokenized gold products fall under the UK’s collective investment scheme (CIS) or alternative investment fund (AIF) perimeter may affect the development of certain use cases.

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

The regulator said it may consider several policy responses depending on industry feedback. These include clarifying existing rules, developing a recognized classification for specific regulatory purposes and assessing targeted rule or legislative changes.

It may also consider whether a bespoke regime for tokenized gold or tokenized commodities is needed.

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UK regulators advance wholesale tokenization

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

In the statement, 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.

They said collateral was the most frequently mentioned use case. Respondents asked for more clarity on the eligibility of tokenized collateral, including tokenized money market funds, gold and stablecoins. 

The FCA and BoE said they will publish a tokenization roadmap later this year with 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.

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