About a calendar month ago, the CME Group along amongst Thompson-Reuters ended their contract early on amongst the LBMA inwards which they ran the daily benchmark auctions to develop aureate prices inwards the Western markets. And spell at that topographic point has been speculation every bit to why they chose to summarily move out their 5 twelvemonth contract amongst the LBMA 2 years early, at that topographic point bring been few evidenced reasons for their cutting ties amongst the daily aureate fix.
Until now?
On Apr 12 the Chicago Mercantile Exchange (CME Group) announced they were inwards the lastly stages of testing for a novel aureate trading platform that volition run using Blockchain technology, too volition opened upwards up the buying too selling of newspaper (digital) aureate that is reportedly backstopped using physical aureate from the British Royal Mint.
Model using Digital Gold Tokens inwards lieu of physical gold
Pretty soon, pension funds too other institutional traders volition live able to purchase too sell aureate using a trading platform inspired past times the digital currency bitcoin.
U.S. of America futures too options telephone substitution CME Group announced on Tuesday that it is inwards the lastly stages of testing a platform for spot aureate that’s based on the blockchain, the pioneering distributed-ledger engineering that powers the bitcoin network.
CME built the platform inwards partnership amongst the Great Britain Royal Mint, which has helped render $1 billion inwards aureate bullion to dorsum transactions executed on the network, too blockchain companionship AlphaPoint.
The platform isn’t expected to launch until after this year, according to tidings releases from the CME Group too AlphaPoint.
Physical aureate volition live represented on the platform past times tokens called RMGs—short for Royal Mint Gold. The platform is the kickoff digital aureate production targeted at institutional investors, too its besides the kickoff to run amongst a authorities entity, according to the releases. - Marketwatch