UK Financial Conduct Authority drafting tokenized gold framework

Aug 10, 2026

The UK Financial Conduct Authority is drafting a regulatory framework for tokenized gold to preserve London's position as the world's leading gold trading hub, which faces rising competition from China. The regulator is consulting financial institutions on using tokenized gold as collateral in wholesale markets. This initiative is part of a broader UK strategy to digitize financial markets, which officials project could boost annual economic output by 33 billion pounds ($44 billion) by 2035.

FCA tokenized gold regulatory framework

▪The UK Financial Conduct Authority is expected to announce progress on drafting new rules for tokenized digital assets within the next few months following its industry consultations.
▪The UK Financial Conduct Authority has held discussions with banks and other financial institutions to gather feedback on potential rules for tokenized gold.
▪The UK Financial Conduct Authority is preparing to outline plans for new regulatory standards and rules for tokenized gold.

London global gold trading dominance

▪London's historical dominance as the premier global hub for over-the-counter gold trading is facing increasing competition from China.
▪The global price of gold reached an all-time high of approximately $5,595 per troy ounce in January 2026 before declining to around $4,340 by August 2026.
▪London operates as the world's largest over-the-counter gold trading hub, accounting for approximately 70% of global notional gold trading volume according to the World Gold Council.

UK wholesale digital markets strategy

▪A UK government-backed industry task force projected in July 2026 that financial market tokenization could increase the UK's annual economic output by up to 33 billion pounds ($44 billion) by 2035.
▪Chris Woolard, the UK Treasury's wholesale digital markets lead, established a 12-month plan in July 2026 to accelerate the digitization of the country's financial markets.
▪The UK's digital market roadmap aims to launch the country's first tokenized government bond by early 2027.
▪The Financial Conduct Authority and the Bank of England revealed joint plans in May 2026 for the tokenization and modernization of UK financial markets.

Tokenized gold as collateral

▪The UK Financial Conduct Authority is consulting financial institutions on how tokenized gold could be utilized as collateral in wholesale markets.
▪Tokenized gold is a process where digital tokens are created to represent ownership rights in physical gold, with the token issuer holding the physical bullion as backing.