UK Regulators Prepare Framework for Tokenized Gold

The UK's Financial Conduct Authority (FCA) has been in talks with banks and other industry participants to establish rules for tokenized gold. The regulator is reportedly preparing to outline plans for new regulatory standards for this asset class.

London is the world's largest over-the-counter gold trading hub, accounting for about 70% of global notional gold trading volume, according to the World Gold Council. The talks come amid a broader UK push to expand tokenized financial markets.

A government-backed industry task force said in July that tokenization could add as much as £33 billion ($44 billion) to the UK's annual economic output by 2035. This is part of the roadmap for expanding tokenized markets, which also includes making tokenized securities usable for trading, settlement, and as collateral.