The UK’s Financial Conduct Authority (FCA) is in discussions with market participants regarding the regulation of tokenized gold, according to a report by the Financial Times, citing sources.
Sources indicate that the regulator has been consulting with industry representatives, including major banks, on establishing rules for tokenized gold and supporting the growth of this segment.
Simultaneously, the FCA is gathering feedback on how this instrument could function as collateral in wholesale markets.
One source mentioned that the agency might announce the development of regulatory standards in the coming months.
The Financial Times links these discussions to the UK’s wholesale financial markets digitalization program and the competition for leadership in gold trading.
According to the publication, London remains the largest trading hub but faces pressure from China and platforms in Shanghai and Hong Kong. A source told FT that without market modernization, including tokenization, competitors might overtake its leadership.
Sources also highlighted the issue of oversight. The FCA does not regulate physical gold trading but sets rules for gold derivatives and exchange-traded products.
In June, the UK regulator set the application period for crypto company authorization from September 30, 2026, to February 28, 2027.
