According to CoinMeta, as reported by the Financial Times, the UK Financial Conduct Authority (FCA) is discussing standards for tokenized gold with major banks and other market participants. These discussions are examining how digital gold will operate in the wholesale market, including its potential use as collateral. Although no specific regulatory guidelines have yet been established, these discussions are based on a policy document jointly issued by the FCA and the Bank of England on May 18th, which explicitly states that tokenized gold can be used as collateral for uncleared over-the-counter derivatives. The FCA is evaluating the eligibility of tokenized collateral and recognizes the potential benefits of tokenized money market funds and tokenized gold. Regulators also plan to release further policies later this year to explain how tokenized collateral will function within the existing regulatory framework.