Block chains are expected to reshape one of the world’s oldest markets


nnnSurprise: The explosive growth of Bitcoin prices has also led to the rapid development of its underlying technology chain, which has also attracted the attention of many industries, from banks to retailers that the technology is to verify and record the transaction of a A groundbreaking way. And gold as a hedge product, its market development also has a long history. Now, including the exchange owner CME Group, IEX Group’s TradeWind Markets and financial technology company Paxos, including companies are introducing a similar platform, want to bring gold into the digital age.n
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nGold market to speed up the block chain revolution.n
nThere has been a public online classified account in the explosive growth of the counter-currency of the counter-currency, which has also attracted the attention of many enterprises, from banks to retailers that the chain-chain system is a kind of verification and record of transactions Revolutionary way. And now, including the exchange owner CME Group, IEX Group’s TradeWind Markets and financial technology company Paxos, including companies are introducing a similar platform, the gold into the digital age.n
nThere are nearly $ 27 billion ($ 34.1 billion) of gold on the OTC market every day, and the settlement of such deals often takes a few days to make the buyers and sellers bear the risk of price volatility. The use of block chain is expected to bring more transparency, security and faster transaction speed. This can also attract new participants when investors are hovering on the gold exchange traded fund, which is the main source of material demand growth over the past decade.n
nJP Morgan Chase Asset Management Energy Investment Leader Ebele Kemery on August 9, said in a telephone interview:n
nn”Digital gold will gain market share from other gold tools: Futures, Entity Gold, Gold ETF.” She said that using this technology to deal with precious metals will “create new ways for investors to find value.”n
nnThe first use of block-chain technology, the price of Bitcoin has quadrupled in 2017, more than $ 4,000. And this year, the price of the encrypted currency for the first time exceeded the price of gold.n
nCME Group, the owner of the world’s largest exchange, also worked with the British Royal Mint to build a gold bullion called Royal Mint Gold last year. According to the group’s Web site, CME works with block-chain security platform company BitGo to provide a “fast and cost-effective encryption security method” for buying, holding, and trading precious metals.n
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nTest systemn
nAccording to CME, the RMG trading platform is being tested with major financial institutions and will be open to customers by the end of the year. This is consistent with the timetable set by the exchange for the first time in November 2016. The deal says the product is aimed primarily at institutional investors and retail investors and will support up to $ 1 billion in gold stored in the mint.n
nTradeWind, a fund manager specializing in precious metals, also applies the block-chain technology to its electronic platform, matching buyers with gold sellers in the treasures approved by the London Gold and Silver Market Association. TradeWind also provides distributed classified books that handle transaction settlement, account management, and record keeping. The company is expected to launch the product by the end of this year or early next year.n
nBusinesses view the block chain system as a groundbreaking way to validate and document transactions.n
nPaxos also created the Bankchain Precious Metals. Paxos CEO Charles Cascarilla said in a telephone interview that this is a block-chain settlement service that allows real-time transfer payments and ownership transfers to be stored in gold bars in London’s vaults.n
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nLiquidation transactionn
nAccording to a statement released in April, Paxos has successfully liquidated Citigroup, Societe Generale SA (Societe Generale SA), a pilot test conducted by Paxos prior to its termination of its partnership with Euroclear, ), Barrick Gold Corp. and International Asset Holdings (INTL FCStone).n
nCascarilla said Paxos, which builds the infrastructure, has conducted another test, but the test involves a dollar transfer through the Fed and the transfer of gold ownership in the London Treasury, proving that the system is ready to handle the immediate Settlement. He said that even if Paxos terminated its partnership with Euroclear, the service would be scheduled to be launched by the end of this year.n
nBullionVault research director Adrian Ash said that, however, the block chain can not solve all the problems related to the delivery of gold entities. The company operates an online platform for retail sales of $ 2 billion worth of precious metals stored in the world’s treasury (including Zurich, London, New York and Singapore). The platform handled a total of 38 metric tons of gold trading, which is more than all the gold reserves in Peru.n
nAsh said:n
nn”People do not trust the government, so why should they be kept in the government’s vault? Our customers do not want their gold to the commercial bank custody, because commercial banks may also be bankrupt, and when we buy gold from the bank When you put it in a special storage facility, then you need a truck to transfer the gold, and the block chain can not solve the truck problem.n
nnPaxos ‘settlement services may attract customers like Tornado Bullion (currency dealers, metal recyclers, and gold bar buyers’ online trading platforms). Peter Thomas, co-founder of the company, said in a telephone interview that Tornado was also following the progress of Bankchain and hoped that the technology would reduce transaction costs.n
nAt present, Tornado is through JP Morgan Chase (JPMorgan Chase

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