World Gold Council is taking gold into the digital age

The World Gold Council is seeking to launch a digital form of gold, a transformative concept designed to enhance how the precious metal is owned, traded, and utilised.

In partnership with Linklaters and Hilltop Walk Consulting, the council has released a discussion paper detailing a “pioneering vision” to transform the global gold market through the introduction of Wholesale Digital Gold.

Presently, gold trades in the wholesale market are settled in two main structures. The first is allocated gold. This involves direct ownership of specific physical bars but is operationally complex. The second is unallocated gold, which has higher liquidity and lower costs, but may expose investors to the credit risk of the institution where the account is held.

The World Gold Council is proposing a new way to settle gold, bridging the gap between these two structures. Pooled Gold Interests (PGI) combines the best of both by providing physical ownership – like allocated gold – but with new benefits to investors.

This includes broader and simplified use of the yellow metal, including as collateral; easy and secure transfer of gold interests between parties; and ownership of an interest in a pool of vaulted gold bars – even in small, fractional amounts.