Bullion on the Blockchain: A New Gold Standard?

Noelle Acheson is a 10-year veteran of company analysis, corporate finance and fund management, and a member of CoinDesk’s product team.

The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday, exclusively to our subscribers.

gold, nuggets

It’s hard to believe that the price of gold was fixed twice a day via conference call as recently as two years ago.

In 2015, the London gold market (the largest in the world) switched to an electronic pricing system, broadening participation and, in theory, ending decades of opacity, inefficiency and occasional manipulation. However, the price is still fixed only twice a day and most trading of physical bullion still occurs on OTC markets, perpetuating the lack of transparency and cumbersome reconciliation.

This partially explains the recent flurry of activity in gold trading technology.

This past week alone, both Euroclear and the Royal Mint announced progress in testing blockchain-based gold trading. IEX also has trials under way, and the Canadian Royal Mint already allows the public to buy and sell bullion on a blockchain platform.

Other exchanges are looking at non-blockchain clearing solutions.

While each project has different specifications,

Read more ... source: CoinDesk

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