UK FCA to regulate tokenized gold for market modernization
6.6 Regulation The UK FCA is drafting rules for tokenized gold to modernize markets and keep London’s lead in bullion trading. Digital gold tokens may be used as collateral and boost efficiency.
The UK Financial Conduct Authority (FCA) is developing a regulatory framework for tokenized gold to modernize financial markets and reinforce London’s leadership in global bullion trading. Tokenized gold represents digital tokens backed by physical gold, allowing for digital transfer of ownership and potential use as collateral in wholesale transactions. The FCA has engaged with major banks and industry stakeholders to discuss regulatory standards, focusing on how tokenized gold could enhance market efficiency and integrate with existing financial infrastructure. This initiative aligns with a broader strategy to support tokenized asset adoption and update the issuance, trading, and settlement processes for financial instruments in the UK. Further policy guidance and regulatory standards are expected in the coming months, as authorities recognize the transformative potential of tokenization for wholesale markets.
