TechFlow news: Mark Williamson, Global Head of FX and Commodities Partnerships and Propositions at HSBC Holdings, said the bank has launched a new platform that tokenizes ownership of physical gold in its London vault using distributed ledger technology. The new system creates digital tokens representing gold bars, which can be traded through the bank's single-dealer platform.
Williamson said blockchain technology makes the entire process more efficient, allowing clients to easily track their gold holdings, including tracing the serial number of each individual bar. HSBC plans to expand the system to include other precious metals.
This initiative is part of HSBC’s broader use of blockchain technology. The bank already operates a platform called HSBC Orion for issuing and holding digital assets such as digital bonds. One token on the new system equals 0.001 troy ounce, while a standard London gold bar equals 400 troy ounces.
