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UK plans rules for tokenized gold to keep London atop bullion trade
The FCA is consulting financial institutions on how tokenized gold could be used as collateral in wholesale markets.
The UK’s financial regulator, the Financial Conduct Authority, is drawing up rules to govern tokenized gold, a move framed as part of the country’s broader digital asset strategy. According to CoinDesk, tokenized gold would represent ownership of physical bullion, with the token issuer holding the gold as backing. The FCA is consulting financial institutions on how these tokenized assets could be used in wholesale markets, including as collateral. The effort is also designed to help preserve London’s role as a leading hub for global gold trading as competition increases, particularly from China. CoinDesk cites data from the World Gold Council showing London’s over-the-counter market accounts for 70% of the world’s notional trading volume. CoinDesk reports the FCA expects to announce progress on drafting rules for tokenized digital assets within the next few months, and that its tokenization work is not tied to a specific retail use case, instead focusing on broader market developments.
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