FCA Pushes Blockchain Framework for Tokenized Gold in London

The Financial Conduct Authority (FCA) is pushing for a blockchain framework to support tokenized gold in London, a move that could help maintain the city's dominance in global gold trading.

London currently handles around 70% of global gold trading, but competition from Shanghai and Hong Kong is rising. The FCA wants to make tokenized gold eligible as collateral in wholesale markets, which would allow it to be used alongside traditional instruments in uncleared OTC derivatives.

The goal is to increase efficiency for institutional players by enabling near-instant 24/7 collateral mobilization, automated margin call processing, and reduced settlement friction on OTC derivatives. This move builds on a joint paper released in May 2026 by the FCA, Bank of England, and Prudential Regulation Authority (PRA), which identified tokenized gold as a potential collateral candidate.