UK FCA Holds Talks With Banks on Tokenized Gold Rules, Plans New Standards

The UK Financial Conduct Authority has held discussions with several banks and industry participants on potential rules for tokenized gold, and has sought feedback on the use of tokenized gold as collateral in wholesale markets. People familiar with the matter said the regulator is preparing to outline a new regulatory standards framework for tokenized gold. London is the world's largest over-the-counter gold trading center, accounting for approximately 70% of global nominal gold trading volume, according to World Gold Council data.

The discussions come as the UK pushes to expand its tokenized financial markets. A government-backed industry working group said in July that tokenization could add up to £33 billion (about US$44 billion) annually to UK economic output by 2035. The roadmap also proposes issuing the UK's first tokenized government bond before early 2027, and seeks to make tokenized securities usable for trading, settlement, and as collateral. The World Gold Council said this year that digital gold means ownership "will no longer be limited by bar size, vault location, or fragmented settlement mechanisms."