1 month ago
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Key Takeaways
- Tokenized gold matters only if institutions can rely on the digital claim as they would conventional bullion.
- Custody, ownership and settlement rules will determine whether digital gold can function as institutional collateral.
- The FCA initiative could make gold more useful inside wholesale markets without changing the asset underneath it.
- Gold is becoming part of a broader UK push to move traditional financial assets onto digital infrastructure.
London still accounts for roughly 70% of global gold trading, according to World Gold Council figures cited by the Financial Times, but Shanghai and Hong Kong are expanding their role in wholesale trading. The pressure is pushing the UK to reconsider infrastructure that has changed relatively little while other financial centers invest in more digital market systems.
The FCA has been discussing how digital representations of physical bullion could operate in wholesale markets, inclu...
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