The World Gold Council (WGC), together with the Swiss infrastructure and application provider DLT aXedras Group, will issue tokens backed by the main precious metal for retail investors.
With Gold247, the WGC blockchain will create the basis for global gold bar tracking. David Tait, chairman of the World Council, said that the next step is to launch a digital token backed by physical gold.
According to the head of the WGC, this initiative can make gold trading more accessible to all classes of investors, including retail ones. In recent years, gold and digital assets have competed as investment alternatives to stocks, bonds, and fiat currency. Some bitcoin advocates often refer to it as “digital gold”.
The Council already once, in 2004, tried to launch a gold-backed exchange-traded fund. However, there are barriers that may prevent retail investors from exchanging ETF units for real gold bars.
Now, as part of a new initiative, the WGC will issue gold-based tokens that “defragment the gold market”, increasing the availability and transparency of the real physical commodity, stimulating demand from ordinary investors. However, market participants who gathered at the conference where the concept of the new solution was presented were skeptical that Gold247 would gain momentum, since many previous attempts to tokenize the gold market had failed.
In August, the regional leadership of the WGC said that the use of the blockchain will allow the gold mining industry to achieve transparency in operations and consumer confidence.
Source: Bits
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