World Gold Council proposes digital model for gold ownership and trading

[Redator]

The World Gold Council (WGC), in partnership with law firm Linklaters and Hilltop Walk Consulting, has released a white paper proposing a new framework for how gold is owned, traded, and used in financial markets.

At the core of the proposal are Pooled Gold Interests (PGIs), which would allow investors to hold fractional, digital claims on physical gold stored in approved vaults.

The system is designed to merge the security of allocated gold with the ease of trading associated with unallocated accounts, while reducing credit risk. PGIs would also be electronically transferable, opening the door for gold to be more widely used as collateral or margin.

In today’s wholesale market, over-the-counter gold trades are settled in two main structures. The first is allocated gold, which gives investors direct ownership of specific physical bars but is operationally complex. The second is unallocated gold, which offers greater liquidity and lower costs but exposes investors to the credit risk of the institution holding the account.

According to the World Gold Council, the proposed Wholesale Digital Gold ecosystem would bridge the gap between these two models.

The plan builds on previous modernization efforts, including the Gold Bar Integrity programme, which applies blockchain technology to track the origin of gold bars and improve transparency.

Gold price sets another record

Gold extended gains to a new all-time high on Wednesday, powered by growing bets on a US interest rate cut, as the market weighs key economic indicators ahead of the Federal Reserve meeting in two weeks.

Spot gold rose another $30 to $3,560.85 an ounce, setting records on back-to-back days. US gold futures also peaked at $3,627.70 per ounce in New York.

Click on chart for live prices.