UK regulators have unexpectedly placed tokenised gold on the policy agenda and signalled a decisive shift from pilots to permanent tokenised market infrastructure, marking one of the clearest indications yet that digital assets are moving into the core of wholesale market reform.
The FCA’s Feedback Statement on tokenisation, published today, reveals that tokenised gold — long discussed in industry circles but rarely prioritised by policymakers — has now been elevated into formal regulatory workstreams. The FCA has also published a Call for Input on tokenised gold, “prompted by several respondents mentioning tokenised gold in their feedback”. The move reflects London’s global dominance in spot gold trading and the growing belief that tokenisation could modernise settlement, collateral and distribution in one of the world’s most liquid commodity markets.
Industry respondents to the original call for feedback, argued that gold is uniquely positioned for tokenisation because of its standardisation, deep liquidity and established custody ecosystem. Several firms told regulators that tokenised gold could become a high‑quality collateral instrument, particularly if combined with programmable settlement and real‑time margining. The FCA’s decision to open a dedicated consultation suggests regulators see tokenised gold as a credible early‑stage asset class for wholesale adoption — not a speculative experiment.
But the gold announcement sits within a broader and more consequential shift: regulators are preparing to move the UK’s tokenisation agenda beyond sandboxes and pilots and into scalable, permanent market infrastructure.
Respondents were clear that the UK must accelerate. The Feedback Statement notes that firms “asked for the roadmap to move beyond pilots and sandboxes towards full production and permanence”, arguing that the lack of long‑term regulatory certainty was holding back investment and slowing adoption. The most common example was the need for a long‑term settlement model after the Digital Securities Sandbox (DSS), which currently provides temporary permissions for digital issuance and settlement.
Regulators have now agreed. The FCA and Bank of England confirmed that the forthcoming Tokenisation Roadmap will include specific dates, detailed workstreams and clarity on dependencies, stating: “We confirm that our Roadmap will include dates and detail on each workstream.” They also acknowledged industry concerns about scale, permanence and the need for a clear pathway out of the DSS into full authorisation.
Since the Call for Input, HSBC has become the first firm authorised to provide notary, top‑tier account‑maintenance and settlement functions within the DSS — a sign that regulators are willing to let major institutions operate core market functions on digital rails. The authorities also reiterated their commitment to developing a long‑term settlement framework, noting that the DSS “was always intended to provide evidence for the development of such a long‑term framework”.
The Bank of England is simultaneously advancing programmable settlement, confirming that stablecoins can be used as settlement assets in the DSS (subject to conditions). The Bank is also consulting on extending RTGS and CHAPS operating hours to near‑24/7 — a foundational requirement for real‑time collateral mobility and tokenised market activity.
Industry sees these moves as essential to unlocking the first major commercial use‑case: collateral. The Feedback Statement notes that collateral was “by far the most frequently mentioned use case”, with firms emphasising tokenised money‑market funds, real‑time margining and increased collateral velocity.
Taken together, the elevation of tokenised gold and the commitment to permanent digital infrastructure mark a turning point. The UK is positioning itself not just as a tokenisation‑friendly jurisdiction, but as the first major market preparing to embed tokenised assets directly into the machinery of wholesale finance.
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