Overview
- A joint vision paper published on May 18 established the principle that tokenized traditional assets should receive the same prudential treatment as their non-tokenized equivalents.
- The FCA is holding talks with major banks and market participants about detailed standards for tokenized gold, a development reported by the Financial Times and echoed in regulator briefings.
- Sixteen firms are testing issuance, settlement and custody models in Britain’s Digital Securities Sandbox as Bank of England upgrades aim for ledger connectivity by 2027 and a live synchronization service by 2028.
- Regulators say they must still resolve core implementation questions about eligibility, legal title on ledgers, custody protections, counterparty risk and interoperability with central counterparties before tokenized gold can be routine collateral.
- London’s dominant bullion market and large vault stocks give the initiative strategic weight and, if standards are set, tokenized gold could cut settlement times, lower costs for wholesale traders and shift some activity toward U.K. infrastructure.