World Gold Council proposes launch of digital gold trading
The World Gold Council, together with Linklaters and Hilltop Walk Consulting, has presented a new initiative aimed at transforming the global gold market through the launch of Wholesale Digital Gold. The concept is designed to modernize the way gold is owned, traded, and settled, reports a Kazinform News Agency correspondent.
At present, wholesale gold trading operates mainly in two forms: allocated gold, which ensures direct ownership of physical bars but remains operationally complex, and unallocated gold, which is liquid and cost-efficient but carries counterparty risk. The proposed system introduces Pooled Gold Interests (PGI), combining the physical security of allocated gold with the flexibility and accessibility of digital ownership. Investors would be able to hold fractional shares of vaulted gold bars and transfer them securely.
Mike Oswin, Global Head of Market Structure and Innovation at the World Gold Council, stated: “Wholesale Digital Gold is a vision to transform the way gold is owned and traded. The UK Government’s recent publication on Financial Markets Digital Strategy highlights the importance of digitalising wholesale markets to drive efficiency, resilience, and innovation—an ambition that closely aligns with our own.”
He added that London, as the world’s leading gold trading hub with an average of 20 million ounces cleared daily, is “well positioned to lead the way in improving the way gold is traded and cleared to the benefit of all market participants.”
The initiative is supported by a legal framework developed by Linklaters, ensuring transparency, beneficial ownership, and regulatory compliance. Richard Hay, Partner and UK Head of Fintech at Linklaters, underlined: “By enabling secure, transparent and efficient digital ownership of fractional interest in gold, we are helping to unlock new opportunities for market participants and reinforcing London’s leadership as the world’s preeminent gold trading hub.”
Earlier, it was reported that over the past ten years, gold-bearing ore production in Kazakhstan has increased 2.2 times, according to Vice Minister of Industry and Construction Iran Sharkhan.
