UK FCA Considers Tokenized Gold Framework Amid Growing Competition
The UK Financial Conduct Authority (FCA) is exploring new rules for tokenized gold in wholesale markets. According to the Financial Times, the FCA has been discussing this with key players in the industry, including banks.
Tokenized gold refers to digital tokens that represent ownership of physical gold, which is stored by a custodian or issuer.
The UK FCA aims to promote the development of digital assets in wholesale financial markets and is also considering whether tokenized gold can be accepted as collateral for wholesale trading.
This comes as London faces growing competition from other centers like Shanghai and Hong Kong, which are actively developing their bullion markets. The World Gold Council notes that London holds up to 70% of all gold trade volume worldwide.