Britain's FCA held talks with banks on tokenized gold regulation and its use as collateral in wholesale markets as the UK pushes for $44B tokenization gains by 2035.
London handles about 70% of global notional gold trading volume, making it the world's largest over-the-counter gold trading hub, according to the World Gold Council. Now, the city's main financial watchdog is moving to shape how a digital version of that market could be regulated.
The UK's Financial Conduct Authority (FCA) has spoken with banks and other industry participants about potential rules for tokenized gold, people familiar with the matter told the Financial Times. Those discussions included how tokenized gold products could serve as collateral in wholesale markets.
FCA Moves Toward Setting New Standards
The regulator is reportedly working on plans to publish new regulatory standards for tokenized gold. Cointelegraph reached out to the FCA for comment but had not received a response at the time of publication.
The FCA discussions fit within a wider government effort to grow the UK's digital asset infrastructure. A government-backed industry task force said in July 2026 that tokenization could add as much as 33 billion British pounds ($44 billion) to the UK's annual economic output by 2035.
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That same roadmap targets the UK's first tokenized government bond by early 2027 and aims to make tokenized securities functional across trading, settlement, and collateral use cases. Tokenized gold, if regulated, would sit alongside those efforts as another asset class brought into a digital framework.
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