CME Group and the Royal Mint have begun testing a blockchain-based platform for trading gold.
The RMG digital trading platform is based on technology from AlphaPoint and BitGo and will enable institutions to trade RMG (Royal Mint Gold), a digital gold product created by the Royal Mint and CME Group.
Mike Belshe Co-Founder & CEO of BitGo said:"For the first time in history, a government owned treasury, top-tier financial institutions, and technology companies have come together to innovate in a major market. Gold has never before been transparently tradable around the globe. As collaboration between blockchain solution providers and mainstream financial institutions accelerates, vast new economic opportunities will be unlocked across a range of markets."
RMG said its holders will negate counterparty risk, by having direct ownership of physical gold bullion where each RMG represents ownership and full title to 1g of physical gold bullion held in the form of fully allocated, LBMA Good Delivery Bars within The Royal Mint's vault.