UK Royal Mint goes for blockchain gold
The UK’s Royal Mint will issue Royal Mint Gold (RMG) in mid-2017, a blockchain based digital record of ownership for gold stored at its bullion vault storage facility.
CME Group, a derivatives marketplace, will develop, implement and operate the product’s digital trading platform which will see gold traded on an exchange using blockchain.
The Royal Mint says RMG will “provide an easier, cost-effective and cryptographically secure alternative to buying, holding and trading spot gold”.
RMGs will not be sold by the Royal Mint to consumers directly but instead will be available to investors through third party investment intermediaries such as banks and brokers. Each RMG issued will be equal to the value of one gram of gold.
The idea behind the blockchain partnership is to cut costs involved in gold trading. The storage charges and management fees for RMGs are also less than traditional gold trading methods.
In 2017, the Royal Mint will issue up to $1 billion worth of RMGs with an option to issue more based on demand.
The use of gold is an intriguing development. The fintech world may soon see other commodities jump on the blockchain bandwagon. Gold may be a lone ranger… or maybe it’s hi-yo, silver! Away!