FCA Prepares Regulatory Framework for Tokenized Gold

The UK's Financial Conduct Authority (FCA) is reportedly preparing to outline plans for new regulatory standards for tokenized gold. The regulator has been holding talks with banks and other industry participants over potential rules for this emerging market.

The FCA has also sought feedback on the use of tokenized gold as collateral in wholesale markets, according to people familiar with the matter. London is the world's largest over-the-counter gold trading hub, accounting for about 70% of global notional gold trading volume, according to the World Gold Council.

The move comes amid a broader UK push to expand tokenized financial markets. A government-backed industry task force has predicted that tokenization could add as much as £33 billion ($44 billion) to the UK's annual economic output by 2035.