UK Prepares Regulatory Framework for Tokenized Gold

FCA Engages Industry on Tokenized Gold Rules

The UK’s Financial Conduct Authority (FCA) has begun consultations with banks and market participants to shape regulatory standards for tokenized gold, sources told the Financial Times. Regulators are exploring how tokenized gold products could be treated in wholesale markets, including their suitability as collateral for settlements and lending.

Focus on Collateral and Wholesale Markets

Officials have requested feedback on using tokenized gold as eligible collateral, reflecting broader efforts to bring digital assets and tokenization into mainstream finance. London remains a dominant center for over-the-counter gold trading, representing roughly 70% of global notional volume, according to the World Gold Council — making the city a logical place to pilot tokenized commodities.

UK Tokenization Roadmap and Economic Potential

The discussions align with a government-backed industry task force that recently highlighted tokenization’s economic upside, estimating it could add up to £33 billion to the UK economy annually by 2035. The roadmap also aims to launch the nation’s first tokenized government bond by early 2027 and enable tokenized securities for trading, settlement and collateral use.

Implications for Digital Assets and Market Infrastructure

Adopting a clear framework for tokenized gold would offer legal certainty for issuers, custodians and institutional investors, and could accelerate adoption of tokenized securities and other digital assets. Market participants and crypto firms are watching the FCA’s next steps closely; Cointelegraph has reached out to the FCA for comment. As regulators define rules, considerations around custody, provenance, and settlement finality will be key to integrating tokenized commodities into wholesale finance.