FCA explores tokenized gold entering UK wholesale collateral market, London accounts for 70% of global trading volume

Odaily Planet Daily News: The UK regulator Financial Conduct Authority (FCA) is exploring how tokenized gold can be incorporated into wholesale markets, including whether it can be used as collateral. The discussions involve regulatory approaches for institutional markets, with relevant rules potentially being announced in the coming months.



The regulatory discussions come as London seeks to consolidate its position as the global gold trading hub. According to World Gold Council data, London currently accounts for approximately 70% of global gold trading volume, while Shanghai and Hong Kong are competing for a larger share of wholesale business.



HSBC launched tokenized gold products for retail investors in Hong Kong more than two years ago, and stated that cumulative trading volume has exceeded $2.2 billion, with over 276,000 transactions. The FCA does not directly regulate physical gold trading, but it does regulate gold derivatives and publicly listed exchange-traded products. (Bitcoin.com News)