The UK Financial Conduct Authority (FCA) is currently exploring whether tokenized gold could be accepted in wholesale markets, including its potential use as collateral. These discussions are focused on how such products should be regulated when offered to institutional investors, and any resulting rules might be unveiled in the next few months. This regulatory effort coincides with London’s ongoing push to maintain its status as the leading global center for gold trading. According to data from the World Gold Council, London handles roughly 70 percent of the world’s gold trading volume, while Shanghai and Hong Kong are both trying to capture more of the wholesale market. HSBC, for its part, introduced a tokenized gold product to retail customers in Hong Kong more than two years ago. The bank says that since launch, cumulative trading value has surpassed $2.2 billion, with more than 276,000 transactions executed. The FCA does not directly oversee physical gold trading; instead, its regulatory remit covers gold derivatives and exchange-traded products available on public markets.
The UK Financial Conduct Authority (FCA) is examining whether tokenized gold can play a role in wholesale markets, including serving as collateral for institutional participants. The regulatory discussions focus on how to oversee such products when distributed to institutional investors, and any resulting framework could be made public within the next several months.
The initiative arrives as London works to defend its position as the world’s principal gold trading hub. Data from the World Gold Council shows that London accounts for roughly 70% of global gold trading volume. Shanghai and Hong Kong, meanwhile, are competing for a greater share of wholesale trading activity. The FCA does not directly regulate physical gold trading, but it does oversee gold derivatives and exchange-traded products available on public markets.
Separately, HSBC launched a tokenized gold product for retail investors in Hong Kong more than two years ago. The bank says cumulative trading value has exceeded $2.2 billion, with more than 276,000 transactions executed to date.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
