London still accounts for about 70% of global OTC gold trading volume.
On Monday, the UK FCA formally issued a Call for Input on “tokenized gold” — it wasn’t asking about the concept, but about classification: for certain physical gold tokens, whether they should be treated as CIS/AIF fund products.
FCA states: If classification is unclear or falls into the boundaries of a fund, some investors may get stuck—can they hold positions? Options include clarifying existing rules, targeted exemptions, and even creating separate frameworks for tokenized gold/commodities. The consultation closes on October 23.
On the same day, it also sent a feedback statement on wholesale market tokenization to the Bank of England: among 123 responses, collateral was the most frequently cited use case; a roadmap will be released later this year.
I’m筛ing this one—not because “Gold on-chain” sounds good—it's because London’s clearing infrastructure is fighting over the seams of the rules. Products like $XAUT and $PAXG have already run elsewhere; this time, the UK is putting the boundary between wholesale collateral and funds onto the same table.
Not investment advice.