The UK Financial Conduct Authority (FCA) is currently exploring how tokenised gold could be brought into wholesale markets, with one of the main questions being whether such assets can serve as collateral. The regulatory work is directed at institutional market participation, and any resulting rules may be made public in the coming months. This review arrives as London seeks to consolidate its standing as the world's leading venue for gold trading. Figures from the World Gold Council indicate that London handles approximately 70 percent of global gold trading volume, while Shanghai and Hong Kong are increasingly competing for a larger share of wholesale bullion business. HSBC, for its part, introduced a tokenised gold offering for retail clients in Hong Kong more than two years ago. The bank has reported cumulative transaction value exceeding $2.2 billion, spread across more than 276,000 individual transactions. The FCA's remit does not extend to direct oversight of physical gold trading. Instead, its supervision applies to gold derivatives and to exchange-traded products listed on public markets.
The UK Financial Conduct Authority (FCA) is examining whether tokenised gold can be brought into wholesale markets, with collateral eligibility among the central questions.
The regulator's work is aimed at institutional market participation. Potential rules could be published within the coming months.
The timing matters for London. The city is trying to defend its position as the global centre for physical gold trading. World Gold Council data shows London captures roughly 70% of worldwide gold trading volume, while Shanghai and Hong Kong are chasing a larger share of wholesale business.
HSBC already tested the format on the retail side. The bank launched a tokenised gold product for retail clients in Hong Kong more than two years ago, and reports cumulative turnover above $2.2 billion from more than 276,000 transactions.
The FCA's regulatory perimeter is worth noting: it does not directly supervise physical gold dealing, but it does oversee gold derivatives and gold-backed products listed on public markets.
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