28 June 2017
download the report now

Royal Mint to issue digital gold

29 November 2016  |  9991 views  |  1 Gold bar stacked 1

The Royal Mint, a 1000-year-old institution owned by HM Treasury, is partnering with CME Group to create a digital gold product that will be stored and recorded on a blockchain.

Launching in 2017, the initiative will see The Royal Mint issue the new commodity, dubbed Royal Mint Gold (RMG), as a digital record of ownership for the previous metal stored at its on-site bullion vault storage facility. CME Group has been contracted to develop, implement and operate the product’s digital trading platform.

David Janczewski, director of new business at The Royal Mint says: “Distributed ledger technology is a game changer and supplying gold on a blockchain has been on our minds for some time. We’re now inviting the wider market to participate in this project alongside us and CME Group and we look forward to engaging with interested parties in the days ahead."

Unlike the traditional physical spot cost model for investing in gold with management fees and ongoing storage charges levied, RMGs will offer ownership of the underlying gold with the option for conversion to physical gold by The Royal Mint with zero storage cost.

The initial amount of RMG at launch could be up to $1 billion worth of gold. It will be offered through investment providers. Further RMG will then be issued based on market demand.

Julie Winkler, senior managing director, research, product development and index services at CME Group says the new digital trading platform will operate 24 hours a day, 365 days a year.

“Developing a digital gold trading platform will help ensure that CME Group’s current product offerings meet the evolving needs of the global marketplace," she says. "As we continue to expand our global footprint and develop new products, this platform will help set standards for digital assets in financial markets.”

Comments: (1)

Christopher Williams
Christopher Williams - RTpay - Boca Raton | 29 November, 2016, 10:53

Depending on costs - what are they, including buy/sell spread? - this could be a very popular product. Is it scaleable to much higher numbers, particularly in times of crisis? 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

The pound will not be round for much longer

The pound will not be round for much longer

31 October 2016  |  7057 views  |  1 comments | 12 tweets | 10 linkedin
Gold bullion hacker gets jail term

Gold bullion hacker gets jail term

14 September 2016  |  3566 views  |  0 comments | 2 tweets | 1 linkedin
Euroclear explores use of blockchain in London gold markets

Euroclear explores use of blockchain in London gold markets

22 June 2016  |  6832 views  |  0 comments | 11 tweets | 13 linkedin
Royal Mint sees increased demand for coins

Royal Mint sees increased demand for coins

24 July 2015  |  6631 views  |  0 comments | 14 tweets | 4 linkedin

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.www.fisglobal.comvisit www.finastra.comvisit www.events.sap.com

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
11339 views comments | 4 tweets | 5 linkedin
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
8874 views comments | 19 tweets | 34 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
8313 views comments | 9 tweets | 6 linkedin
hands typing furiouslyArtificial Intelligence- Computer to IOT
8289 views 0 | 4 tweets | 2 linkedin

Featured job

Six Figure Base + Commission + Stock Options

Find your next job