Britain’s Financial Conduct Authority, Bank of England, and Prudential Regulation Authority published a joint vision paper on May 18 outlining how tokenized gold could serve as collateral in over-the-counter derivatives trades. The framework falls under existing UK EMIR rules, treating physical and tokenized gold identically without creating a new regulatory category or additional obligations. The FCA also confirmed in April that authorized funds can invest in tokenized forms of eligible assets. The Bank of England plans infrastructure upgrades enabling digital ledger connectivity by 2027, with a live synchronization service expected online in 2028. Sixteen firms are currently testing these applications through the Digital Securities Sandbox.
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