UK FCA Develops Tokenized Gold Regulatory Framework

The UK Financial Conduct Authority is developing a regulatory framework for tokenized gold, holding discussions with major banks and market participants to establish standards for digital representations of the precious metal. The move is part of a broader effort to digitize wholesale financial markets and maintain London's dominance in global bullion trading amid growing competition from Asian centers.

The FCA's discussions, reported by the Financial Times on August 10, 2026, focus on how tokenized gold could be used as collateral in uncleared over-the-counter derivatives markets. This would place digital gold tokens alongside cash and government bonds in daily margin calls, rather than treating them solely as client products. The regulator is examining how to oversee tokenized gold, as it does not currently regulate physical gold trading but does set rules for gold-based derivatives and exchange-traded products.

The initiative builds on a joint policy paper published on May 18, 2026, by the FCA, the Bank of England, and the Prudential Regulation Authority. That paper outlined how tokenized gold could serve as collateral under existing UK EMIR rules, which govern derivatives...