UK regulator prepares framework for tokenised gold - Financial Times

The Financial Times reports that the UK regulator is preparing a framework specifically for tokenised gold. The move signals a step toward bringing digital representations of physical commodities under a structured rulebook, rather than leaving them to operate in a regulatory grey area.

Tokenised gold typically involves a digital token backed by physical bullion stored in a vault. A formal framework would offer clarity on key operational issues, such as custody, audit trails, and how token holders’ legal ownership is defined. For the wider markets, classification and oversight could affect how these products are distributed and marketed, along with the compliance standards expected of issuers.

What warrants attention is the detail of how the framework treats settlement and redemption, and whether it aligns with existing rules for other digital assets. The approach could influence how other jurisdictions handle commodity-linked tokens, setting a precedent for integrating traditional assets with distributed ledger infrastructure. Consolidation of these rules may help bridge the gap between conventional finance and emerging tokenised markets, though the final scope remains to be seen.