The Financial Conduct Authority is considering whether digital records tied to physical gold could ease wholesale trading and collateral use, with its consultation on the issue closing Oct. 23.
London vaults held 9,850 tonnes of gold valued at $1.2 trillion at the end of October, according to London Bullion Market Association data. The tally includes commercial vaults and the Bank of England’s gold holdings.
The FCA sought views on possible wholesale uses for tokenized gold, including trading, transfers, holding and pledging bullion as collateral. The consultation examines arrangements in which digital records connect tokens with ownership rights in physical gold and allow those records to move electronically.
The regulator is also asking about practical obstacles and perceived uncertainty around the regulatory perimeter for collective investment schemes and alternative investment funds. It says it will weigh possible gains in market efficiency and competitiveness alongside consumer protection and market integrity.
The FCA said respondents to a joint May 2026 call with the Bank of England identified gold as a subject for further work. The agency linked that interest to London’s position as the world’s largest spot-gold trading center.
The response period has ended, and the FCA says submissions will inform its future policy work.
