UK FCA Eyes Tokenized Gold Exemptions as RWA Market Tops $30B

Point of Focus

• The UK FCA is exploring tokenized gold, seeking industry feedback until Oct. 23.
• Tokenization could make gold easier to trade, transfer and use as wholesale collateral.
• The consultation comes as on-chain real-world assets (RWAs) surpass $30 billion.

The UK Financial Conduct Authority (FCA) is seeking industry feedback on whether tokenizing gold could make the asset easier to trade, transfer, pledge and hold across British financial markets.

The regulator opened the consultation on Monday, Sept. 14, with responses accepted until Oct. 23.

The initiative follows a joint FCA and Bank of England call for input in May on tokenization in UK wholesale markets, where respondents specifically highlighted gold as an area with potential for distributed ledger technology (DLT).

The push comes as the value of on-chain real-world assets (RWAs) has climbed above $30 billion, reflecting growing demand for blockchain-based representations of traditional financial assets.

FCA explores special treatment for tokenized gold

The FCA is examining how existing rules would apply to tokenized gold and whether regulatory changes could support adoption without weakening market integrity or consumer protections.

One option reportedly under consideration is a bespoke regime that could exempt some tokenized gold and commodity structures from certain collective investment scheme and alternative investment fund requirements.

TOKENIZATION IS BECOMING ONE OF TODAY'S BIGGEST FINANCE STORIES

The UK is exploring a dedicated framework for tokenized gold while the Bank of England considers tokenized assets and stablecoins as collateral.

Meanwhile, $AXG already reports 10 RWA projects and $52M tokenized.… pic.twitter.com/1Xh3bHJJnZ

— TradePulse (@TradePulse2) September 14, 2026

The FCA has not yet adopted such exemptions. The current process is intended to gather industry views before determining how tokenized gold should be treated under the UK’s regulatory framework.

The regulator said tokenization could potentially improve the efficiency and competitiveness of Britain’s wholesale markets while preserving the strengths of London’s existing gold infrastructure.

London is particularly important to the discussion because it hosts the world’s largest over-the-counter gold trading hub.

Tokenization could turn gold into digital collateral

The FCA identified several potential applications beyond simply allowing investors to own blockchain-based representations of gold.

Tokenization could make physical gold easier to divide, transfer and integrate with digital financial infrastructure. Crucially, the regulator said tokenized gold could also be used more easily as wholesale collateral.

🚨 TOKENIZED GOLD JUST GOT A MAJOR REGULATORY SIGNAL

The UK FCA is now formally exploring tokenized gold

That matters for $AXG: its FERION platform already includes AUROX, a token backed by allocated physical gold, while AXG reported $52M tokenized across 10 RWA projects pic.twitter.com/XjfLhdkAFX

— whaditizzz (@whaditizzz) September 14, 2026

The technology could additionally create new retail investment products and other financial services built around gold-backed digital assets.

The Bank of England has separately been examining the role tokenized assets and stablecoins could play within the future financial system, including their potential use as collateral.

RWA market surpasses $30 billion

The FCA’s consultation arrives as real-world asset tokenization expands rapidly across blockchain networks.

Onchain RWAs have now surpassed $30 billion in value after growing more than 70% this year, strengthening the case for traditional financial centers to develop clearer frameworks for tokenized assets.

Onchain RWAs just crossed $30B, up 70%+ this year.

Real-world assets move at crypto speed now. Instant settlement, global access, no closing bells.

Trade the real world. pic.twitter.com/0rw6bZeBpU

— OKX (@okx) September 14, 2026

For the UK, the stakes are particularly high.

The FCA’s review is designed to determine whether blockchain technology can modernize gold trading while allowing London to maintain its leading position as global financial markets increasingly move traditional assets on-chain.