HSBC Takes Stab at Using Blockchain to Modernize London’s Antiquated Gold Market
- System creates tokens representing gold in bank’s vault
- Blockchain allows investors to more easily track gold they own
Around 698,000 gold bars are stored in vaults in the Greater London area, valued at around $525 billion, according to the London Bullion Market Association.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
One of the world’s top bullion banks is bringing blockchain to the antiquated London gold market.
HSBC Holdings Plc has launched a platform that uses distributed ledger technology to tokenize ownership of physical gold held in its London vault, Mark Williamson, global head of FX and commodities partnerships and propositions, said in an interview. The new system creates digital tokens that represent gold bars, which can then be traded through the bank’s single-dealer platform.