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Royal Mint starts gold trading based on blockchain

The Royal Mint has teamed up with the CME Group to work on a tool for precious metal trade based on the blockchain technology and it will be available for traders next year.

The product called Royal Mint Gold (RMG) is designed to fundamentally dispel the traders and investors’ perception of trading and bullion transaction.

ʺThe Royal Mint has a unique history and a trusted reputation earned over many centuries trading in gold but until now, there hasn't been a way to digitally trade physical gold. Developing a trading platform with CME Group will satisfy customer demands for faster, cost effective and secure ways to buy, hold and sell gold and complement our existing products,ʺ Vin Wijeratne, CFO of The Royal Mint said.

This digital trading platform will operate 24 hours a day, 365 days a year. 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 with zero storage cost.

It is planned to launch RMG up to $1 billion worth as an initial proposal, then the issue will be based on market demand.

The Royal Mint has a history dating back over 1,000 years. It was based in the Tower of London and remained there for over 500 years. Then it moved to the refurbished building of the St. Mary’s abbey. The mint moved out to Llantrisant in South Wales in 1968. The Royal Mint was transformed into Royal Mint Ltd., the capital of which belongs to the Royal Treasury.

CME Group is one of the world’s largest option and futures exchange and the S & P 500 and Dow Jones Industrial Average indices. Earlier this month, the company in partnership with London Crypto Facilities launched public indices of Bitcoin RTI and BRR. Indices show Bitcoin price situation on the basis of trading data on the largest cryptocurrency exchanges in Asia, Europe and North America.

Source: forklog

  • December 7, 2016 4:56 PM MSK