The UK Financial Conduct Authority (FCA) is advancing discussions on a regulatory framework for tokenized gold, collaborating with major banks and industry participants. As reported by the Financial Times on August 10, the initiative could enable tokenized gold to serve as collateral in wholesale markets, particularly for uncleared over-the-counter derivatives.
London accounts for roughly 70% of global gold trading, making the project particularly significant. The FCA's talks build on a May 18 joint policy paper with the Bank of England and the Prudential Regulation Authority (PRA), which explicitly identified tokenized gold as a possible form of collateral. The regulators plan further policy guidance later this year, aiming to integrate tokenized collateral within the existing regulatory framework rather than creating an entirely new rulebook.
Infrastructure work is already underway. Sixteen firms are working through Britain’s Digital Securities Sandbox on live tokenized asset infrastructure. Meanwhile, the Bank of England is scheduled to upgrade its securities and collateral system in 2027 and introduce a synchronization service by 2028, connecting digital asset ledgers with sterling central bank money.
The PRA has emphasized that tokenized traditional assets should receive the same prudential treatment as their conventional equivalents, provided their legal rights and underlying risks are comparable. The World Gold Council is also developing a wholesale digital gold structure called Pooled Gold Interests, targeting institutional and wholesale participants. According to LBMA data, London vaults held 9,339 tonnes of gold, valued at approximately $1.384 trillion, as of March’s end.
An announcement on developing tokenized gold standards is expected within the next few months, according to a source familiar with the FCA’s plans. This follows the closure of the broader tokenization consultation on July 3, with a full cross-authority roadmap anticipated later in 2026.
