UK regulator plans framework for tokenized gold to boost London's global trading role

Britain's Financial Conduct Authority (FCA) is developing a regulatory framework for tokenized gold, aiming to strengthen London's position as a global gold trading hub amidst increasing competition from Hong Kong and Shanghai. The initiative involves discussions with industry bodies, including major banks, on using tokenized gold as collateral in the wholesale market, with regulatory standards expected in several months. Tokenized gold represents ownership rights in physical gold, backed by bullion held by issuers.