The UK's Financial Conduct Authority (FCA) is preparing a regulatory framework for tokenized gold and its use as collateral in wholesale markets. This follows broader efforts to expand tokenization of
In an ongoing effort to regulate the burgeoning crypto market, the UK’s Financial Conduct Authority (FCA) is reportedly developing a regulatory framework for tokenized gold. According to reports in The Financial Times, discussions have been held between FCA officials and industry players such as banks regarding potential rules governing these products.
The focus on tokenized gold comes amid a push by the UK government to expand its use of tokenization across financial markets. In July 2026, an industry task force estimated that tokenization could add up to £33 billion ($44 billion) annually to the UK’s economic output by 2035.
Tokenized gold represents a digital representation of physical gold stored in a blockchain or other distributed ledger technology. These tokens can be used as collateral in wholesale markets, potentially offering greater liquidity and accessibility compared to traditional physical gold trading.
The development is significant for London, which accounts for about 70% of global over-the-counter (OTC) gold trading volume. Tokenized gold could enhance the city’s status as a leading financial center by providing new avenues for traders and investors interested in precious metals without the logistical complexities associated with physical delivery.
While the FCA is yet to officially comment on its plans, this development underscores the growing importance of regulatory clarity in the crypto space. The roadmap also includes plans for tokenized government bonds and seeks to make these securities usable for trading, settlement, and as collateral.
Traders should monitor developments closely, given that any changes could affect how they manage their portfolios and engage with financial markets. Additionally, this move aligns with global trends towards greater regulation of digital assets and highlights the UK’s proactive stance in shaping the future of finance through technology.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.