Gold Market Faces UK Tokenization Push as China Challenges London

Key Insights

• Gold market rules could bring tokenized bullion into wholesale collateral.
• UK FCA discussed tokenized gold standards with major banks.
• London faced stronger bullion competition from Shanghai and Hong Kong.

The U.K. Financial Conduct Authority discussed tokenized gold standards with major banks on Aug. 10. The talks focused on wholesale collateral use and London’s gold market position. The Financial Times reported that standards could emerge within several months.

The development mattered because London remains the dominant wholesale bullion center. China has also expanded Shanghai and Hong Kong’s roles in physical gold trading. The UK FCA initiative therefore, connected tokenization policy with competition between major bullion hubs.

Gold Market Faces New UK FCA Tokenization Push

The FCA and Bank of England had already outlined their joint tokenization approach on May 18. Their consultation covered digital securities, prudential treatment, tokenized collateral and central-bank settlement.

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