Britain's Financial Conduct Authority (FCA) has begun work to set regulatory standards for tokenised gold. On Aug. 10 local time, Cointelegraph reported that the FCA discussed rules on tokenised gold and ways to use it as collateral in wholesale markets with banks and industry participants.
The FCA also gathered industry views on using tokenised gold as collateral in wholesale markets.
The discussions align with Britain's push to expand its tokenised financial market. A government-backed industry task force said in July that tokenisation could increase Britain's annual economic output by up to 33 billion pounds by 2035.
The roadmap also includes introducing the first tokenised government bond in early 2027 and enabling tokenised securities to be used for trading, settlement and collateral.
London accounts for about 70 percent of global notional gold trading volume, the World Gold Council said.
The FCA did not respond to a request for comment on the matter.
Chi-gyu Hwang
delight@d-today.co.kr