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Big Banks Are Putting Gold on the Blockchain

November 3, 2023
x min read

Gold is coming to the blockchain. And one of the world’s biggest banks is behind it.

What’s happening:

  • HSBC Holdings has announced plans to tokenize physical gold held in London vaults onto the blockchain through the launch of a new platform
  • They will initially allow institutions to buy and sell tokenized gold and are aiming to be able to eventually bring it to the masses

Why it matters:

  • There have been a flurry of venture backed startups aiming to tokenize gold through blockchain technology as a way to usher gold into the digital age
  • HSBC Holdings represents the first major banking institution to get behind the idea which will likely be seen as enormous validation for the concept

By the numbers:

  • There are almost 700,000 gold bars stored in London and surrounding areas
  • The value of that physical bullion is worth approximately $525 billion

Going deeper:

  • Despite the enormous amount of gold physically being stored in London, all record keeping is done manually and all trading is done over the counter

The intrigue:

  • HSBC has been experimenting with numerous different types of tokenization projects, including being able to issue digital bonds

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