The financial regulator in the United Kingdom may remove tokenized gold from the standard fund regulations of the nation.
The Financial Conduct Authority is exploring the creation of a dedicated framework tailored for tokenized gold, the watchdog announced on Monday.
Jon Relleen, who serves as the director of infrastructure and exchanges at the Financial Conduct Authority, informed the Financial Times ahead of the FCA statement that tokenized gold has surfaced as a focal point during conversations with market participants concerning asset tokenization. He stated that they want to evaluate whether traditional regulatory structures remain appropriate for gold markets and how modern developments can enhance the performance and competitiveness of U.K. exchanges.
The FCA shared with CoinDesk back in August that it was drafting guidelines for tokenized gold as an element of its broader digital asset agenda designed to preserve London’s status as the principal global center for precious metal commerce. The over-the-counter market in London has historically held the top position for gold trading and presently represents 70% of worldwide notional trading activity, although China represents a growing competitive challenge.
The agency noted that tokenizing gold could simplify the process of transferring the asset and utilizing it across digital marketplaces, particularly as wholesale collateral. They added that it might also facilitate novel retail investment opportunities and product advancements.
Tokenized gold functions as a digital equivalent of the precious metal, conferring ownership privileges on the holder for the physical gold maintained by the issuer of the digital asset.
These concepts form part of a broader initiative by U.K. authorities to foster the adoption of tokenization within wholesale financial markets. Back in July, the United Kingdom and the United States established a collaborative framework to facilitate the cross-border movement of tokenized financial instruments between their respective jurisdictions.
Furthermore, the Bank of England alongside the FCA announced they were gathering opinions regarding strategies for tokenization and its implementation throughout financial markets. In a joint declaration, they emphasized that the time has arrived to integrate tokenization into financial infrastructure to stimulate economic expansion and technological progress.
Originally published at https://www.coindesk.com/business/2026/09/14/fca-considers-exempting-tokenized-gold-from-fund-rules-to-defend-london-market.
