We intercalate a van der Waals heterostructure of graphene and hexagonal Boron Nitride with Au, by encapsulation, and show that Au at the interface is two dimensional. A charge transfer upon current annealing indicates redistribution of Au and induces splitting of the graphene bandstructure. The effect of in plane magnetic field confirms that splitting is due to spin-splitting and that spin polarization is in the plane, characteristic of a Rashba interaction with magnitude approximately 25 meV. Consistent with the presence of intrinsic interfacial electric field we show that the splitting can be enhanced by an applied displacement field in dual gated samples. Giant negative magnetoresistance, up to 75%, and a field induced anomalous Hall effect at magnetic fields < 1 T are observed. These demonstrate that hybridized Au has a magnetic moment and suggests the proximity to formation of a collective magnetic phase. These effects persist close to room temperature.Spin orbit coupling in graphene is induced by hybridization with heavy metals [1]. This has been achieved by intercalation of graphene using e.g. Au, which produces a Rashba interaction ∼ 100 meV [2], and Pb [3], on metallic substrates. We intercalate Au into a heterostructure of graphene and dielectric hexagonal Boron Nitride (hBN), and report spin-splitting of the graphene bands observed in quantum oscillations on an insulating substrate, a crucial requirement for applications. The Rashba interaction is large (25 meV) for samples intercalated with 0.1 monolayers (ML) of Au, but is modulated by modest electric fields, thereby highlighting the requirement of hybridization with spin-split Au d-electrons [2]. We observe large negative magnetoresistance, up to 75%, indicating Au ions form magnetic moments and an anomalous Hall effect suggests the possible formation of a collective magnetic phase. The combination of Rashba interaction, magnetic moments and electric field control of the density, is akin to dilute magnetic semiconductors [4], and in a Dirac material opens a route toward electric field control of magnetism and engineering topological magnetic states such as the quantum anomalous Hall effect [5,6].The van der Waals interaction can create an atomically clean interface between stacked two-dimensional (2D) crystals [7]; therefore, it can be considered organizing principle for atoms or molecules at a hetero-interface [8]. Here, we use the van der Waals interaction to cleanly intercalate Au between graphene and hBN and to induce strong hybridization between graphene and Au. We intercalate graphene-hBN heterostructures by depositing 0.1-0.5 nominal ML of Au onto freshly cleaved hBN on SiO 2 in ultra high vacuum. Au decorated hBN is used as the substrate onto which a separately prepared graphene/hBN (thickness ≈ 20 nm) is transferred, the structure is illustrated in Fig. 1a. The stack is etched and metallic contacts are formed at the exposed edges of graphene [9]. Following thermal annealing the heterostructure is flat with root mean square roughness of 0....