The UK Financial Conduct Authority (FCA) is in discussions with banks over a possible regulatory framework for tokenized gold, according to the Financial Times. The regulator is expected to publish guidance or standards in the coming months as financial institutions assess how digital representations of gold should be treated within the financial system.
The FCA currently regulates gold-linked derivatives and exchange-traded products but does not directly supervise physical gold trading. The FCA and Prudential Regulation Authority are also considering whether tokenized gold could be accepted as collateral for uncleared over-the-counter derivatives.
🇬🇧 UK regulators are preparing a framework for tokenized gold.
The FCA is working on rules for how tokenized gold can be used as collateral in wholesale markets.
This is bigger than gold.
One of the world’s major financial centres is now building the regulatory infrastructure… pic.twitter.com/IHZmUNsBjq
— That Martini Guy ₿ (@MartiniGuyYT) August 10, 2026
If approved, tokenized gold could become part of routine margin arrangements alongside assets such as cash and government securities. That would give the tokens a practical role in institutional trading and could encourage banks and brokers to use blockchain-based gold as financial collateral rather than treating it solely as an asset offered to investors.
London and Hong Kong may be building the next generation of gold markets
The FCA’s discussions with banks come as financial centers in Asia are also upgrading how gold is traded and settled. Hong Kong began trial operations of a government-backed gold clearing company on July 7, while London remains the world’s dominant wholesale gold market, handling about 70% of global trading volume and more than $160 billion in daily transactions in 2025, according to the World Gold Council.
The two developments are taking different routes, but they point toward the same institutional goal which is making gold easier to use within modern financial markets. Hong Kong is strengthening the infrastructure for clearing and settlement, while UK regulators are examining whether tokenized gold could qualify as collateral for derivatives. With JPMorgan, UBS and Citi involved in Hong Kong’s clearing initiative and also active in London’s precious-metals market, the developments show that the push to modernize gold is not confined to one financial center.
Also Read: Global RWA Regulation Splits Into Two Tracks as Tokenized Markets Expand
Is tokenized gold already ahead of the rules?
Financial firms are already giving investors access to digital versions of gold, even as UK regulators consider how the assets should be treated in institutional markets. London-based digital prime broker GCEX has added Pax Gold and Tether Gold for institutional clients, while HSBC’s tokenized gold product in Hong Kong has processed more than $2.2 billion across 276,000 transactions.
Retail trading data also shows strong demand for gold-linked products. Gold has represented as much as 90% of trading volume at some CFD brokers this year, while Capital.com reported that gold accounted for 59% of its monthly trading volume during a period when client turnover reached $1.27 trillion. VT Markets also recorded $8 trillion in first-half trading volume, a 212% increase from a year earlier, with precious metals and currencies contributing to the growth.
The numbers show that investors can already trade tokenized gold, but banks cannot necessarily use those tokens as collateral in institutional derivatives markets. That distinction could determine whether tokenized gold remains another way to gain exposure to the metal or becomes a financial instrument with a much larger role in the banking system.
Additionally, FCA has finalized its long-awaited crypto regulatory framework, setting out new rules for trading platforms, stablecoin issuers, custodians and other digital asset businesses ahead of a mandatory authorization regime that begins on October 25, 2027.
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