Popular Tags


British royal court chooses blockchain for gold operations

British Royal Mint is going to digitize in 2017 about $1 billion in gold equivalent and introduces for that an electronic token RMG (Royal Mint Gold), which will amount to 1 gram of gold.

Royal Mint signed a cooperation agreement with a major US financial derivatives operator CME Group in order to implement blockchain, or distributed registry technology, in the process of gold transactions, said Quartz publication.

The idea is to enable investors to make transactions with gold, which is stored in Royal Mint's safes and vaults, using a digital token or equivalent of Bitcoin, which was named Royal Mint Gold (RMG). Each token will be equal to one gram of gold.

The new technology will reduce the maintenance costs and the storage of gold, which are inevitable when making cash transactions with gold. For example, the very British Mint charges a fee for the use of its gold vault in the amount from 0.5% to 1% of the average value of the client's assets per year

This project may be the world's first commercial implementation of the blockchain technology. Despite the fact that about 90% of large banks around the world are already experimenting with the introduction of this technology, a sharp decline in investors' interest in blockchain is observed in the last two years – precisely because of the absence in the market of ready-financial instruments based on a distributed registry.

Source: infotop

  • December 16, 2016 2:56 PM MSK