Odaily Planet Daily reports that the UK regulator, the Financial Conduct Authority (FCA), is exploring how tokenized gold could be integrated into the wholesale market, including its potential use as collateral. The discussions involve regulatory approaches for institutional markets, with relevant rules expected to be published in the coming months. These regulatory discussions come as London seeks to solidify its position as the global hub for gold trading. According to data from the World Gold Council, London currently accounts for approximately 70% of global gold trading volume, while Shanghai and Hong Kong are vying for a larger share of wholesale business. HSBC launched a tokenized gold product for retail investors in Hong Kong over two years ago and reported that cumulative trading volume has exceeded $2.2 billion across more than 276,000 transactions. The FCA does not directly regulate physical gold trading but oversees gold derivatives and products listed on public markets. (Bitcoin.com News)
FCA Explores Tokenized Gold for the UK Wholesale Collateral Market
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Summary
The UK’s Financial Conduct Authority is examining the role of tokenized gold in the wholesale market, including its use as collateral. The review covers regulatory frameworks for institutional adoption, with potential rules expected soon. London handles 70% of global gold trading volume and aims to maintain its leadership. HSBC’s tokenized gold product in Hong Kong has recorded over 276,000 transactions and $2.2 billion in trading activity.
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