UK FCA Begins Work on Regulatory Framework for Tokenized Gold
Summary
- The UK Financial Conduct Authority has begun preparing regulatory standards for tokenized gold.
- The FCA gathered industry feedback on using tokenized gold as collateral in the wholesale market, including from banks and other financial firms.
- A UK government-backed industry task force said tokenization could add as much as 33 billion pounds to the UK's annual economic output by 2035, and laid out a roadmap for tokenized government bonds and tokenized securities.
Forecast Trend Report by Period
The UK Financial Conduct Authority has begun preparing regulatory standards for tokenized gold.
Cointelegraph reported on August 10 that the FCA has recently discussed regulatory approaches for tokenized gold with banks and other financial industry participants. People familiar with the matter told the Financial Times that the regulator also sought feedback on using tokenized gold as collateral in wholesale markets.
London is the world's largest over-the-counter gold trading hub. The city accounts for about 70% of global notional gold trading volume, according to the World Gold Council.
The talks are in line with the UK government's broader push to expand tokenized financial markets. A government-backed industry task force said in July that tokenization could add as much as 33 billion pounds, or about $44 billion, to the UK's annual economic output by 2035.
The roadmap also included plans to issue the UK's first tokenized government bond by early 2027 and to allow tokenized securities to be used for trading, settlement and collateral.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.