UK Regulators Push for Tokenized Gold Standards

The UK's Financial Conduct Authority (FCA) is collaborating with banks and other market participants to establish standards for tokenized gold. This effort aims to modernize London's bullion market, which faces growing competition from Asia.

Currently, London accounts for around 70% of global gold trading, according to the World Gold Council. However, Shanghai and Hong Kong are expanding their role in wholesale trading, pushing the UK to reconsider its infrastructure.

The FCA's initiative focuses on creating a framework for digital representations of physical bullion to operate within wholesale markets. This includes potential use in margin and other institutional transactions. Industry standards could be announced within the coming months.