UK Tokenized Gold Collateral & Fund Exemption Simulator

Policy & Reserve Levers

London Bullion Reserves (GBP) £250B

Estimated vaulted London gold reserves available for institutional liquidity backing

Tokenized Adoption Share

Portion of vaulted physical gold represented as high-grade digital legal claims

Traditional Fund Haircut 25%

Existing UCITS / fund restriction discount on physical bullion collateral

Proposed FCA Exemption Haircut 8%

Proposed preferential haircut under streamlined digital settlement regime

Traditional Settlement Speed 3 Days (T+3)

Physical unallocated/allocated gold clearing cycle (typically T+2 to T+3)

Tokenized Settlement Speed 0.1 Days (2.4 hrs)

Atomic on-chain delivery vs payment (DvP) speed

FCA Regulatory & Collateral Impact ● Live Real-Time Model

Regulatory Framework Status

Exempt under FCA Proposal Framework

Qualified under proposed UK Fund Regulation Sandbox Exemption

Unlocked Net Collateral

£42.5B

+£42.50B capital released into UK markets

Net Capital Efficiency Gain

17.0%

Haircut differential (25% vs 8%)

Liquidity Velocity Multiplier

30.0x

3 Days vs 0.1 Days settlement speed

Tokenized Reserve Volume

£37.5B

15% of £250B reserves

Collateral Realization Capacity Comparison Total Reserve: £250B

Proposed FCA Tokenized Framework Capacity: £34.50B (8% Haircut)

£34.5B Active

Traditional Fund Rules (Current) Capacity: £28.13B (25% Haircut)

£28.1B Active

■ Active Collateral Volume ■ Regulatory Haircut ■ Untokenized Vault Inventory

Source Evidence & Regulatory Grounding: Cointelegraph reporting (14 Sep 2026) citing Financial Times regarding Financial Conduct Authority (FCA) discussions to exempt tokenized bullion from restrictive UK fund regulations. London holds substantial global gold reserves whose institutional collateral velocity can expand under streamlined regulatory treatment.