The UK Financial Conduct Authority is in talks with major banks on a regulatory framework for tokenized gold, according to BlockTempo. The effort is described as part of a broader push to digitize financial markets while preserving London’s role as a global gold trading center. The regulator is expected to release a plan for drafting the relevant standards in the coming months.
The report says this is not the first time the UK has moved to build rules around digital and tokenized assets.
UK expands its tokenization rulebook
BlockTempo said the UK brought stablecoins into a formal regulatory system in 2025, with the FCA and the Bank of England jointly setting standards for systemic stablecoins. In May 2026, the two authorities also published a shared vision for tokenization in UK wholesale markets, explicitly backing the use of tokenized technology to improve clearing and settlement efficiency.
Against that backdrop, a framework for tokenized gold is presented as the next step in extending UK tokenization policy from stablecoins and wholesale markets into real-world assets, or RWA.
Gold is the next asset class under discussion
The article notes that gold, as a major global safe-haven asset, already has a tokenized market led by crypto-native projects such as Pax Gold (PAXG) and Tether Gold (XAUt). By moving to establish a regulatory framework, the UK is effectively creating a compliant route for traditional financial institutions to enter that market.
The FCA has already opened discussions with industry participants, including major banks, on how tokenized gold should be regulated. As framed in the report, that points to a preference for folding tokenized gold into the existing financial system rather than building a separate “crypto gold” ecosystem.
London’s gold market position is part of the context
BlockTempo described London as the world’s largest gold trading center, accounting for more than 40% of global daily gold trading volume. At the same time, the rise of emerging markets and digital assets is pushing more gold activity toward on-chain platforms.
The report adds that if the UK does not move first on a tokenized gold framework, other jurisdictions such as Switzerland and Singapore could define the standards ahead of London, putting its advantage at risk.
No detailed rules yet
According to the article, bringing tokenized gold into the FCA’s framework could mean requirements tied to client money protection, reserve audits, and anti-money laundering rules, following a logic similar to the UK’s stablecoin regime. That said, the report makes clear the process remains at the discussion stage.
The FCA has not yet published a specific timetable, detailed compliance requirements, or whether existing tokenized gold products such as PAXG would directly connect to the future framework. For now, the market is waiting for official announcements expected over the next few months.
What the move could mean for crypto markets
As presented in the report, a completed framework for tokenized gold would add another compliant piece to the real-world asset market. For crypto markets, that would make the path clearer for traditional financial institutions looking to enter RWA and could improve liquidity and institutional adoption for on-chain gold products.