UK Seeks Dedicated Framework for Tokenized Gold: What Will London Gain?

The UK’s Financial Conduct Authority (FCA) is considering creating a regulatory framework for tokenized gold that is separate from existing fund rules.

In a statement made on September 14, 2026, the UK’s Financial Conduct Authority (FCA) announced that it could work on a dedicated regime for tokenized gold. The agency stated that this approach could help London maintain its position in global gold trading and facilitate the easier use of gold in digital markets.

Jon Relleen, the FCA’s Director of Infrastructure and Exchanges, said that they are examining whether current regulations are still suitable for gold markets. Therefore, the step on the agenda stands out not as an implemented exemption, but as an evaluation of creating a regime separate from existing fund rules.

Aiming to Preserve London’s Position as a Gold Hub

London’s over-the-counter gold market accounts for approximately 70 percent of the total trading value in the global gold market. China’s challenge to dominance in this field is accelerating the UK’s efforts to maintain its competitiveness in gold trading.

Tokenized gold is defined as a digital representation that provides ownership rights over physical gold held by the issuer. The FCA stated that these products could facilitate the transfer of gold in digital markets and pave the way for its use specifically as wholesale collateral.

The agency also noted that tokenization could support new forms of retail investment and the development of financial products. In July, the UK and the US announced a joint plan aimed at facilitating the movement of tokenized financial products between the two countries’ markets.

The Bank of England and the FCA have also begun collecting feedback on the use of tokenization in financial infrastructure. These efforts are being carried out as part of a broader financial transformation plan than the special regime being considered for tokenized gold.