TLDR Tech / Crypto
FCA tokenized gold rules and reserve diversification
The FCA is currently developing regulations to determine if tokenized gold can be utilized as collateral for OTC derivatives, recognizing that London facilitates 70% of global gold trades and tokenization simplifies gold trading. This move comes amidst recent geopolitical shifts, including the effective closure of the Strait of Hormuz since February and oil prices exceeding $100. Central banks further underscore this trend by purchasing a record 289 tonnes of gold last quarter. Consequently, reserve managers are increasingly reallocating assets towards options that are independent of politically sensitive dollar payment systems.
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