How to choose the right regulatory model for digital gold in the EU?
Before the first line of smart contract code is written, an institution must decide on the legal character of the token. In the European Union, this choice dictates the technical architecture and the specific MiCA requirements.
Model 1: Asset-Referenced Tokens (ART) under MiCA
This is the purest form of Digital Gold. The token represents physical LBMA Gold at a 1:1 ratio (e.g., 1 token = 1 ounce).
- Regulation: Markets in Crypto-Assets (MiCA) regulation.
- Key Requirements: 1:1 reserve backing of LBMA Gold, no interest generation, and a clear right to immediate redemption.
- Advantage: The "European Passport" – once authorized, the Digital Gold product backed by LBMA Gold can be offered across the entire EU.
