London Seeks Tokenized Gold Edge Amid Asia Competition

The UK's Financial Conduct Authority (FCA) is considering new rules for tokenized gold to boost London's position as a global bullion trading hub. This move comes as Shanghai and Hong Kong are challenging London's dominance in international bullion markets.

Tokenized gold links digital tokens to physical bullion held by an issuer, allowing investors to transfer ownership without moving the actual gold between vaults. Blockchain systems can streamline trading, settlement, clearing, and custody across financial markets.

The FCA has consulted major financial firms about regulating blockchain-based gold products. This includes examining whether tokenized gold could serve as collateral in wholesale markets.