FCA Rewrites Fund Laws to Support Tokenized Gold Trading
The UK's Financial Conduct Authority (FCA) is rewriting fund laws to keep tokenized gold trading in London, as volume in blockchain-based bullion surpasses spot gold this year. The FCA opened a consultation on September 15, asking whether certain products should be exempted from collective investment schemes and alternative investment funds rules in the UK. The window closes October 23.
The regulator is targeting products that represent real ownership of physical gold, with transparent backing, clear ownership rights, and redemption that can be counted on. Working alongside the Bank of England, the FCA aims to clarify uncertainty over whether these tokens count as a CIS or an AIF, which has been holding back their use as collateral in wholesale markets.
Tokenized gold trading hit $90.7 billion in the first quarter of 2026 alone, more than the $84.6 billion managed across all of 2025. Annualized, that pace points toward roughly $360 billion for the year, about four times where it stood twelve months earlier.
The FCA's move is seen as proactive, laying track before the train arrives, rather than reacting to a market breakdown. The consultation has three possible outcomes: clarifying existing rules, creating a recognized classification for tokenized gold, or drafting a bespoke regime for tokenized commodities altogether.