LBMA Backs Tokenised Gold Exploration but Urges UK Regulators to Ensure Safeguards

London Bullion Market Association members broadly support exploring tokenised gold to boost collateral efficiency and improve the mobility of allocated metal, the trade body confirmed in response to a UK financial regulator consultation. While banks and wholesale participants highlighted potential benefits in delivery-versus-payment settlement against tokenised cash, views remain mixed on the pace and scale of adoption. Industry participants warned against fragmenting liquidity and cautioned that existing over-the-counter systems already operate efficiently. The LBMA stressed that any regulatory framework must offer legal certainty regarding ownership and insolvency across the Loco London market, which averages $200 billion in daily bullion trading.