UK FCA Tokenized Gold Framework

The UK United Kingdom — Financial Conduct Authority (FCA) is reportedly in early-stage discussions with major banks and industry participants to develop a regulatory framework for tokenized gold, focusing on its use as collateral in wholesale markets. These talks build on a May 18 policy paper jointly published by the FCA, United Kingdom — Bank of England, and United Kingdom — Prudential Regulation Authority, which identified tokenized gold as potential collateral for uncleared over-the-counter derivatives. The FCA has sought feedback on the use of tokenized gold as collateral and is expected to announce standards within the next few months, according to the Financial Times. London, which handles about 70% of global gold trading volume, aims to maintain its leading position amid competition from Asian financial centers. The initiative is part of a broader UK push to expand tokenized financial markets, with a government-backed task force estimating tokenization could add up to £33 billion ($44 billion) to annual economic output by 2035. The roadmap also includes the first tokenized government bond by early 2027. The World Gold Council is developing a wholesale digital gold structure called Pooled Gold Interests. The United Kingdom — Bank of England plans infrastructure upgrades in 2027 and 2028 to support digital asset settlement.