FCA Weighs Tokenized Gold Rules as London Defends 70% of Bullion Trade

The FCA is considering new rules for tokenized gold, potentially allowing it to be used as collateral for uncleared derivatives alongside cash and government bonds. The move could deepen institutional adoption of tokenized bullion and support London’s dominant role in global gold trading, which accounts for about 70% of volume. The discussion comes as Hong Kong has already launched bullion clearing infrastructure and major banks such as HSBC, JPMorgan, UBS, and Citi are involved on both sides. While the article does not describe an immediate price reaction, it signals growing regulatory acceptance of tokenized gold as a financial market instrument, which may boost liquidity, collateral utility, and competition in wholesale gold markets.