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UK FCA develops tokenized gold rules, including collateral use

The FCA is also exploring how tokenized gold could be used as collateral in wholesale markets, according to people familiar with the discussions.

Reported · Written up by our desk · Regulation

UK regulators are preparing a regulatory framework for tokenized gold, with a focus on how the products could function in wholesale markets as collateral assets, Cointelegraph reports. The UK Financial Conduct Authority, or FCA, has held talks with banks and other industry participants about potential rules for tokenized gold, people familiar with the matter told the Financial Times.

The regulator is reportedly working to outline plans for new regulatory standards for tokenized gold and has sought feedback on collateral use. Cointelegraph says it reached out to the FCA for comment.

The discussions arrive alongside a broader UK push to expand tokenized financial markets. A government-backed industry task force said in July that tokenization could add up to 33 billion British pounds, about $44 billion, to the UK’s annual economic output by 2035.

That roadmap also calls for the UK’s first tokenized government bond by early 2027, and it aims to make tokenized securities usable across trading, settlement, and collateral functions. London is described as the world’s largest over-the-counter gold trading hub, accounting for about 70% of global notional gold trading volume, according to the World Gold Council.

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