The FCA and Bank of England are investigating the potential of digital gold to serve as collateral, aiming to boost efficiency and preserve London’s dominance in global gold trading amid wider plans to digitise UK wholesale markets.
The Financial Conduct Authority is examining whether gold can be tokenised in a way that would fit neatly into wholesale finance, with the most immediate question appearing to be whether digital gold could serve as collateral, according to the Financial Times and the FCA’s wider tokenisation work. The regulator does not oversee physical bullion itself, but it does supervise gold-linked derivatives and exchange-traded products, which places it squarely in the part of the market most likely to be affected by any shift to ledger-based ownership.
The review comes as the FCA and the Bank of England push a broader agenda for tokenisation in UK wholesale markets. In a joint paper published in May, the two institutions said tokenisation could speed up issuance, trading, settlement and safekeeping across bonds, gilts and derivatives, while also lowering costs and improving resilience. The paper also singled out tokenised collateral and settlement instruments as areas where firms want more clarity.
That wider policy backdrop helps explain why gold is attracting attention. The World Gold Council says London still accounts for about 70% of global notional gold trading volume, while the city’s OTC market remains the benchmark-setting centre of the trade. The council also notes that the London market benefits from its vaulting infrastructure, strict custody chain and time-zone position between Asia and the US, which all reinforce its status as a global hub.
In market terms, the prize is significant. The World Gold Council estimates global gold trading averaged about $361bn a day in 2025, with London OTC volumes alone around $180bn daily. Crowdfund Insider reported that UK bullion turnover is roughly $60bn a day, underscoring why regulators and market participants may see tokenisation as a way to preserve London’s role while modernising how the asset is used.
The FCA and the Bank of England have both said they want firms to move from pilots to production, with the central bank also exploring longer settlement hours and tokenised equivalents of eligible assets as collateral. For gold, that could mean a new digital layer over one of the world’s oldest markets.
- https://www.crowdfundinsider.com/2026/08/296513-uk-financial-conduct-authority-looks-to-the-tokenization-of-gold/ – Please view link – unable to able to access data
- https://www.fca.org.uk/news/press-releases/fca-and-bank-england-set-out-shared-vision-tokenisation-uk-wholesale-markets – In May 2026, the UK Financial Conduct Authority (FCA) and the Bank of England jointly published a vision for the adoption of tokenisation in UK wholesale markets. This initiative aims to provide regulatory clarity and support the issuance, trading, settlement, and safekeeping of tokenised securities, including bonds, gilts, and derivative instruments. The consultation seeks industry feedback to ensure a digitally enabled wholesale markets ecosystem, with a focus on tokenised securities and efficient movement of assets across the trade lifecycle.
- https://www.gold.org/goldhub/research/market-primer/gold-market-primer-market-size-and-structure – The World Gold Council’s ‘Gold Market Primer: Market size and structure’ report provides insights into the global gold market’s liquidity and trading volumes. In 2025, global gold trading volumes averaged approximately US$361 billion per day, with the London over-the-counter (OTC) market playing a central role, accounting for US$180 billion per day. The report highlights gold’s liquidity, supported by deep OTC activity and liquid listed futures markets, and its resilience during times of financial stress.
- https://www.gold.org/gold-market-structure/global-gold-market – The World Gold Council’s ‘Gold Trading and The Global Gold Market’ overview details the structure and significance of the London OTC market in global gold trading. Historically, London has been the centre of the gold trade, comprising approximately 70% of global notional trading volume. The market attracts participants worldwide and sets the twice-daily global reference benchmark for gold, the LBMA Gold Price. London’s unique vaulting infrastructure and time zone advantage contribute to its status as a leading global financial services hub.
- https://www.dlapiper.com/en-de/insights/publications/2026/06/the-future-of-tokenisation-a-joint-vision-from-the-uk-authorities-for-wholesale-financial-markets – DLA Piper’s article discusses the joint vision set out by the FCA and the Bank of England in May 2026 for the adoption of tokenisation in UK wholesale financial markets. The article reflects on the May 2026 FCA and Bank of England Call for Input, which invites industry responses by 3 July 2026. The paper aims to provide regulatory clarity to support the issuance, trading, settlement, and safekeeping of tokenised securities, including bonds, gilts, and derivative instruments.
- https://www.mayerbrown.com/en/insights/publications/2026/06/tokenisation-of-uk-wholesale-capital-markets-key-takeaways-from-the-fcas-and-bank-of-englands-call-for-input – Mayer Brown’s article summarises the joint Call for Input published by the FCA and the Bank of England in May 2026. The paper seeks industry feedback on the proposed regulatory approach to tokenisation, focusing on tokenised securities such as bonds, cash equities, and fund units. The goal is to create a digitally enabled wholesale markets ecosystem where tokenised securities, cash, and collateral move more efficiently across the trade lifecycle, anchored in central bank money settlement.
- https://www.pymnts.com/blockchain/2026/uk-regulators-unveil-blueprint-for-asset-tokenization-in-wholesale-markets/ – PYMNTS reports on the joint framework issued by the FCA and the Bank of England on 18 May 2026 to accelerate tokenisation within the UK’s wholesale financial markets. The initiative aims to provide regulatory and technical certainty to institutional firms, facilitating the transition of digital asset technology from experimental pilots to mainstream production. Tokenisation creates digital representations of real-world assets on a distributed ledger, potentially streamlining security issuance and asset management while lowering costs and enhancing market resilience.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The article from Crowdfund Insider was published on August 12, 2026. The Financial Conduct Authority (FCA) and the Bank of England published a joint vision for tokenisation in UK wholesale markets on May 18, 2026. ([fca.org.uk](https://www.fca.org.uk/news/press-releases/fca-and-bank-england-set-out-shared-vision-tokenisation-uk-wholesale-markets?utm_source=openai)) The FCA’s recent focus on tokenising gold aligns with this broader initiative. However, the specific details about the FCA’s examination of gold tokenisation are not widely reported elsewhere, raising questions about the originality and freshness of the information. The reliance on a single source for this specific claim reduces the freshness score.
Quotes check
Score:
5
Notes:
The article does not provide direct quotes from FCA or Bank of England officials. The information appears to be paraphrased from the original press release. Without direct quotes, it’s challenging to verify the exact wording and context, which affects the credibility of the claims.
Source reliability
Score:
6
Notes:
Crowdfund Insider is a niche publication focusing on crowdfunding and fintech news. While it provides industry-specific insights, its reach and reputation are limited compared to major news organisations. The article cites the Financial Times and the FCA’s wider tokenisation work, but without direct links or references, it’s difficult to assess the accuracy and independence of the information.
Plausibility check
Score:
7
Notes:
The FCA and Bank of England have shown interest in tokenisation within UK wholesale markets, as evidenced by their joint vision published in May 2026. ([fca.org.uk](https://www.fca.org.uk/news/press-releases/fca-and-bank-england-set-out-shared-vision-tokenisation-uk-wholesale-markets?utm_source=openai)) The focus on tokenising gold is plausible within this context. However, the lack of direct quotes and reliance on a single source for this specific claim raises concerns about the accuracy and completeness of the information.
Overall assessment
Verdict (FAIL, OPEN, PASS): REVIEW
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information about the FCA’s interest in tokenising gold, aligning with broader initiatives in UK wholesale markets. However, the reliance on a single source without direct quotes or links to original materials raises concerns about the accuracy and completeness of the information. The lack of independent verification and the limited reach of the source suggest that further investigation is needed before publishing.