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HSBC tokenizes London Gold Market; deploys DLT



HSBC Holdings Plc, one of the world’s top bullion banks, has announced the launch of a platform that utilises distributed ledger technology (DLT) to tokenise the ownership of gold held in its London vault as it looks to help usher in the digital age for the London gold market.


HSBC’s influence in the bullion market is what makes it unique. It is one of the biggest holders of precious metals in the world and one of the four clearers on the London gold market, where more than $30 billion worth of the metal is traded daily.


Accordingly, the new system creates digital tokens representing gold bars, which can then be traded through the bank’s single-dealer platform. This approach “generates a permissioned digital representation of clients’ physical gold holdings”.


The system is also designed to make investing in gold more accessible, as each token issued by HSBC is equivalent to 0.001 troy ounces versus the standard 400 troy ounces for a London gold bar.



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