UK Regulator Explores Tokenized Gold Fund Rule Exemption | RWA News
RWA news: UK Regulator Explores Tokenized Gold Fund Rule Exemption. This update explains what changed, why it matters for tokenization, onchain finance, and institutional adoption, and what the crypto market should watch next.
RWA And Tokenization Update
[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 accessThe 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.Related: UK financial watchdog weighs lifting prediction markets ban: ReportUK regulators advance wholesale tokenizationThe 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.Magazine: Metaplanet equity backlash, SE Asia crypto funding doubles: Asia Express
Why This RWA News Matters
First, this development may affect tokenized assets, onchain finance, institutional participation, and market liquidity. In addition, it may influence treasury products, private credit, tokenized funds, and cross-market adoption. As a result, traders and investors should watch the next moves closely.
What To Watch Next
Watch for updates from issuers, asset managers, exchanges, and regulators. In particular, any new developments involving tokenized treasuries, real estate, private credit, or tokenized securities could directly affect the broader crypto market.
