{"text":[[{"start":7.36,"text":"UK regulators are preparing a framework for tokenised gold as part of plans to encourage the digitisation of financial markets and to protect the dominance of London in global bullion trading."}],[{"start":18.68,"text":"The Financial Conduct Authority has talked to industry members, including big banks, about ways it could regulate tokenised gold in order to encourage growth in the market, according to people familiar with the watchdog’s plans."}],[{"start":31.28,"text":"The early discussions are part of the UK’s wider efforts to digitise wholesale financial markets and come as London’s gold market dominance is being challenged by China."}],[{"start":41.2,"text":"Tokenised gold involves creating digital tokens that represent ownership rights in physical gold. Gold bars are held by the issuer as a backing asset for the tokens."}],[{"start":50.12,"text":"The FCA has been seeking feedback on how tokenised gold could be used as collateral in wholesale markets and it is expected to make an announcement on developing regulatory standards in this area in the next few months, one of the people said."}],[{"start":62.84,"text":"London dominates the global gold market with about 70 per cent of trading volumes, according to industry body the World Gold Council, but it is facing competition from China, which is seeking to become a bullion hub."}],[{"start":74.84,"text":"“There’s huge competitive pressure from Shanghai and Hong Kong . . . Shanghai wants to become the wholesale hub for the gold market,” one of the people said, adding that if London does not modernise its gold market through measures including tokenisation, other venues may take the lead."}],[{"start":88.76,"text":"They added that discussions included how the FCA could oversee tokenised gold since it does not regulate trading in physical gold, although it does set rules for gold-based derivatives and exchange-traded products listed on public markets."}],[{"start":101.62,"text":"The FCA declined to comment. Earlier this year the FCA and the Bank of England’s Prudential Regulation Authority said they planned to “set out further policy for consideration later this year on how tokenised collateral can operate under the existing regulatory framework”."}],[{"start":116.84,"text":"The FCA is seeking to allow companies to use blockchain technology across financial markets to improve the speed, efficiency and security of how financial assets are traded, settled, cleared and held."}],[{"start":127.68,"text":"Chris Woolard, the UK Treasury’s newly-appointed wholesale digital markets champion, told the FT last month that the country could gain a £33bn economic boost if it accelerated plans to digitise financial markets."}],[{"start":141.72,"text":"Since HSBC launched a tokenised gold product just over two years ago that is only available to its retail customers in Hong Kong, more than $2.2bn of it has been traded in more than 276,000 transactions, the bank said."}],[{"start":156.92,"text":"The World Gold Council said this year that digital gold would mean ownership “would no longer be constrained by bar sizes, vault locations or fragmented settlement mechanisms”."}],[{"start":166.84,"text":"The price of gold soared to a record high of nearly $5,595 a troy ounce in January but has since fallen to about $4,300 as the frenzy has faded."}],[{"start":182.16,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1786346028_5286.mp3"}