HSBC launches a gold tokenization platform, utilizing blockchain technology for transactions

ChainCatcher news, Mark Williamson, Global Head of Foreign Exchange and Commodities Partnerships and Propositions at HSBC Holdings, stated that HSBC has launched a new platform that utilizes distributed ledger technology to tokenize physical gold ownership in its London vault. The new system creates digital tokens representing gold bars, which can be traded through the bank's single dealer platform.

Williamson noted that blockchain technology makes the entire process more efficient, allowing customers to easily track the gold they own, even tracing the serial number of each gold bar. HSBC plans to expand the system to include other precious metals.

This initiative is part of HSBC's broader use of blockchain technology, as the bank already has a platform for issuing and storing digital assets such as bonds, called HSBC Orion. One token on the new system is equivalent to 0.001 troy ounces of gold, while a London gold bar is equivalent to 400 troy ounces.