Regulator Targets Tokenized Gold as London Holds 70% Market Share
UK FCA Eyes Tokenized Gold as London Defends 70% Market Share
The UK’s Financial Conduct Authority (FCA) is looking at how tokenized gold fits within financial markets as London seeks to protect its dominant position in global gold trading, where it is described as holding a roughly 70% market share.
Tokenized gold typically refers to digital tokens that represent a claim on physical gold held in custody. The approach is often presented as a way to make ownership, transfer, and settlement more efficient, while still relying on established bullion vaulting and market infrastructure.
The FCA’s interest matters because gold trading and clearing are closely tied to London’s role as a major financial center. Any shift in how gold exposure is issued, traded, recorded, or settled—especially through blockchain-based systems—can raise questions about market integrity, custody standards, transparency, and investor protections.
In broader context, tokenization has become a focal point for regulators as more traditional assets are represented on-chain. For commodities like gold, key considerations generally include how reserves are audited, how redemptions work, and what legal rights token holders have to the underlying metal.
For London, the discussion is also strategic. Maintaining a large share of global gold activity depends not only on trading volumes, but also on the credibility of standards around custody, settlement, and oversight—areas that tokenized models may reshape.
