Today HSBC announced the first trades of gold tokens where the physical gold is stored in HSBC’s London vault. Using distributed ledger technology (DLT), institutional clients create a digital twin of the physical asset. The tokens can be traded on HSBC Evolve, the bank’s digital platform for FX and precious metal execution.
The platform helps customers to track of the trades and the gold they own in a market where trading is over the counter. Gold bars that meet certain criteria can be automatically tokenized.
While it’s not currently retail focused, it could potentially support fractional gold investment, depending on laws in the jurisdiction. Each token represents 0.001 troy ounce.
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