The UKs Financial Conduct Authority (FCA) has reportedly held talks with banks and other industry participants over potential rules for tokenized gold.
The FCA has also sought feedback on the use of tokenized gold as collateral in wholesale markets, people familiar with the matter told the Financial Times.
The regulator is reportedly preparing to outline plans for new regulatory standards for tokenized gold. Cointelegraph has approached the FCA for comment on the matter.
London is the worlds largest over-the-counter gold trading hub, accounting for about 70% of global notional gold trading volume, according to the World Gold Council.
The talks come amid a broader UK push to expand tokenized financial markets. A government-backed industry task force said in July that tokenization could add as much as 33 billion British pounds ($44 billion) to the UKs annual economic output by 2035.
The roadmap also calls for the UKs first tokenized government bond by early 2027 and seeks to make tokenized securities usable for trading, settlement and as collateral.