UK Regulator Prepares to Unveil Tokenized Gold Framework

The UK's Financial Conduct Authority (FCA) is developing regulatory standards for tokenized gold as part of its push to digitize wholesale financial markets. The move aims to maintain London's position as a leading global financial market, which is being challenged by the US and China.

According to a report in the Financial Times, the FCA has been discussing how to regulate tokenized gold with industry participants, including banks. This comes after a recent report valued the real-world asset (RWA) tokenization market at $60 billion across 7,000 products.

The UK government has also been exploring ways to capitalize on the booming space, and in July, Barclays and PwC published a report suggesting that accelerating adoption of tokenization could unlock up to £33 billion ($44.56 billion) in additional annual GDP by 2035.