UK Weighs Tokenized Gold Rules as Shanghai Challenges London
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The UK’s FCA has consulted major financial firms on rules for blockchain-based tokenized gold and whether such tokens could serve as collateral in wholesale markets, enabling ownership transfers without moving bullion and streamlining trading, settlement, clearing and custody. London aims to use regulation to secure a digital edge against Shanghai and Hong Kong for international bullion trading, which could accelerate crypto and DeFi adoption, token launches and institutional use of tokenized assets.
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The UK is considering new rules for tokenized gold as London faces rising competition from Asian bullion centers. The Financial Conduct Authority (FCA) has consulted major financial firms about regulating blockchain-based gold products. The discussions also examine whether tokenized gold could serve as collateral in wholesale markets.
London Seeks a Digital Edge
Tokenized gold links digital tokens to physical bullion held by an issuer. This structure could allow investors to transfer ownership without moving gold between vaults. Besides, blockchain systems could streamline trading, settlement, clearing, and custody across financial markets.
However, London faces growing pressure from Shanghai and Hong Kong to strengthen their bullion markets. Shanghai Gold Exchange and Hong Kong authorities continue developing infrastructure for international gold trading. Consequently,…
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