UK FCA Weighs Tokenized Gold Rules for Wholesale Market Collateral

The UK’s financial regulator has opened talks with banks and industry participants over rules governing tokenized gold, the Financial Times reported.

Under the framework being considered by the Financial Conduct Authority (FCA), gold represented through tokens could be used as collateral in wholesale markets. Standards covering the proposed structure are expected in the coming months, according to the report. 

The discussions come as the UK seeks to use tokenization to improve market efficiency. London handles about 70% of global gold trading volume.

Source: Financial Times