FCA Seeks to Secure London's 70% Gold Trading Share with Tokenized Framework

The Financial Conduct Authority (FCA) is working on a framework for tokenized gold in the UK, which could boost London's dominance in the global gold market.

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, alongside traditional instruments. This would allow for near-instant 24/7 collateral mobilization, automated margin call processing, and reduced settlement friction on OTC derivatives.

Tokenized gold brings efficiency gains for institutional players, particularly in programmable finance. Aviva Investors' Tokenized USD Liquidity Fund on XRPL shows how RWA liquidity structures are taking shape, and gold could follow the same path once UK standards are clear.