What tokenized gold is
Tokenized gold is a digital asset that tracks the price of physical gold. Each token is backed by a specific amount of bullion stored in a vault. The token can be traded, transferred, or used as collateral, just like the metal itself — but without the need to physically move the gold.
Several companies already offer tokenized gold to retail investors. The FCA's interest, however, is in wholesale markets, where gold is used as collateral for loans and other trades. If tokenized gold works there, it could speed up settlement and reduce the friction of moving physical bullion.
