FCA Explores Tokenized Gold for UK Wholesale Collateral Market

UK regulator investigates tokenized gold integration for institutional collateral. London holds 70% global gold trading share, with rules expected in coming months.

Woofun AI reports that the Financial Conduct Authority is investigating the integration of tokenized gold into the UK wholesale market, specifically assessing its viability as collateral. Regulatory frameworks for these institutional applications are anticipated to be announced in the coming months.

London currently accounts for approximately 70% of global gold trading volume. While the FCA does not regulate physical gold, it oversees derivatives and public market products. This development coincides with HSBC's tokenized gold offerings in Hong Kong, which have processed over $2.2 billion across more than 276,000 transactions since launch.