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Why tokenized gold puts the UK fund perimeter to the test

Rows of gold bars stacked in the Gold reserve of the Bank of England.
Photo: Mathieu Polak/Sygma/Sygma via Getty Images

A carve-out from fund regulations could turn London’s vaulted bullion into real-time digital collateral – if firms can solve the property rights puzzle.

Seeking to modernize London’s wholesale bullion market, which clears the majority of global spot volume, and unlock billions in intraday collateral mobility, the FCA has published a targeted Call for Input examining whether tokenized physical gold should be granted an exemption from UK collective investment fund rules.

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