UK regulators aim to establish standards for tokenized gold as collateral, targeting a $44 billion economic boost by 2035.
The UK’s Financial Conduct Authority is developing a regulatory framework for tokenized gold, exploring its use as collateral in wholesale markets. Discussions with banks and industry participants focus on potential rules and feedback on collateral applications.
London dominates global over-the-counter gold trading, handling roughly 70% of notional volume. A government-backed task force previously projected tokenization could add 33 billion GBP ($44 billion) to annual UK economic output by 2035, alongside plans for a tokenized government bond by 2027.
The initiative aligns with broader efforts to expand tokenized financial markets, including trading, settlement, and collateral use for tokenized securities.