London’s $900B Gold Market Could Be Set for Digital Overhaul: FT

The World Gold Council may develop a digital form of gold to overhaul London’s $900 billion physical market for the yellow metal, the Financial Times (FT) reported on Wednesday.

Each unit of digital gold, or “pooled gold interests” (PGIs), would allow investors to buy a form of fractional ownership in gold bullion. The product will be tested with commercial participants in London, such as major banks and trading houses, starting in the first quarter, the report said.

STORY CONTINUES BELOW

Don’t miss another story.Subscribe to the Crypto Daybook Americas Newsletter today.See all newslettersBy signing up, you will receive emails about CoinDesk products and you agree to ourterms of useandprivacy policy.

Digitization is a requirement for gold to broaden its market reach, World Gold Council CEO David Tait said in an interview with the newspaper.

“We are trying to standardize that digital layer of gold, such that the various financial products used in other markets can be used in the gold market going forward,” Tate said.

Gold hit a record price of over $3,550 per ounce this week, having doubled in price in the last two years, as its reputation as a safe haven asset continues to be borne out amid geopolitical tensions.

The World Gold Council did not immediately respond to CoinDesk’s request for further comment.

 

Leave a Reply

Your email address will not be published. Required fields are marked *