A landmark digital gold initiative is set to transform the global bullion market, merging physical ownership with digital efficiency to elevate London’s role in precious metals trading.
Industry Collaboration Shapes Future of Digital Precious Metals Market in London
The World Gold Council (WGC), Linklaters LLP, and Hilltop Walk Consulting announced on Sept. 3 a joint initiative to launch Wholesale Digital Gold, described as “a transformative concept that will enhance how gold is owned, traded, and utilised.” The proposal introduces Pooled Gold Interests (PGI), intended to merge the advantages of allocated and unallocated gold. The WGC explained:
Pooled Gold Interests (PGI) combines the best of both worlds by providing physical ownership, just like allocated gold, but with new benefits to investors.
The model allows fractional ownership of vaulted bars, broader use of gold as collateral, and secure transfer of interests between parties. The WGC, a membership body that promotes gold’s role as a strategic asset, partnered with Linklaters, a global law firm, and Hilltop Walk Consulting, a boutique advisory specializing in financial market strategy, to deliver this vision.
The initiative builds on work by the Financial Markets Standards Board and consultations with industry participants. It aims to reduce the operational complexity of allocated accounts while avoiding the credit risk tied to unallocated holdings. Mike Oswin, global head of market structure and innovation at the WGC, noted the UK Government’s Financial Markets Digital Strategy and highlighted London’s position in gold trading, with Loco London clearing an average of 20 million ounces daily. He emphasized that Wholesale Digital Gold would reinforce London’s central role.
As the WGC stated: “The Wholesale Digital Gold ecosystem is designed to be technology-neutral, supporting initiatives like World Gold Council and LBMA’s Gold Bar Integrity programme. It also optimises for regulatory compliance and capital efficiency.” The Gold Bar Integrity (GBI) programme, run by the London Bullion Market Association (LBMA) and the WGC, is an initiative that uses blockchain and database technology to track and verify gold bars across the supply chain, improving transparency and trust in the global gold market.
To support the framework, Linklaters designed a legal structure governing the issuance and transfer of PGI, ensuring beneficial ownership of the gold held in custody. Richard Hay, partner and UK head of fintech at Linklaters, stated: “This structure provides legal certainty and supports operational flexibility essential for innovation in precious metals trading.” He added:
By enabling secure, transparent and efficient digital ownership of fractional interest in gold, we are helping to unlock new opportunities for market participants and reinforcing London’s leadership as the world’s preeminent gold trading hub.
Michael Voisin added that the framework aligns with the UK’s wholesale digital strategy. The WGC has invited regulators, technology providers, and market participants to collaborate in shaping the initiative.
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World Gold Council Unveils Wholesale Digital Gold to Transform Global Trading
A landmark digital gold initiative is set to transform the global bullion market, merging physical ownership with digital efficiency to elevate London’s role in precious metals trading.
Industry Collaboration Shapes Future of Digital Precious Metals Market in London
The World Gold Council (WGC), Linklaters LLP, and Hilltop Walk Consulting announced on Sept. 3 a joint initiative to launch Wholesale Digital Gold, described as “a transformative concept that will enhance how gold is owned, traded, and utilised.” The proposal introduces Pooled Gold Interests (PGI), intended to merge the advantages of allocated and unallocated gold. The WGC explained:
The model allows fractional ownership of vaulted bars, broader use of gold as collateral, and secure transfer of interests between parties. The WGC, a membership body that promotes gold’s role as a strategic asset, partnered with Linklaters, a global law firm, and Hilltop Walk Consulting, a boutique advisory specializing in financial market strategy, to deliver this vision.
The initiative builds on work by the Financial Markets Standards Board and consultations with industry participants. It aims to reduce the operational complexity of allocated accounts while avoiding the credit risk tied to unallocated holdings. Mike Oswin, global head of market structure and innovation at the WGC, noted the UK Government’s Financial Markets Digital Strategy and highlighted London’s position in gold trading, with Loco London clearing an average of 20 million ounces daily. He emphasized that Wholesale Digital Gold would reinforce London’s central role.
As the WGC stated: “The Wholesale Digital Gold ecosystem is designed to be technology-neutral, supporting initiatives like World Gold Council and LBMA’s Gold Bar Integrity programme. It also optimises for regulatory compliance and capital efficiency.” The Gold Bar Integrity (GBI) programme, run by the London Bullion Market Association (LBMA) and the WGC, is an initiative that uses blockchain and database technology to track and verify gold bars across the supply chain, improving transparency and trust in the global gold market.
To support the framework, Linklaters designed a legal structure governing the issuance and transfer of PGI, ensuring beneficial ownership of the gold held in custody. Richard Hay, partner and UK head of fintech at Linklaters, stated: “This structure provides legal certainty and supports operational flexibility essential for innovation in precious metals trading.” He added:
Michael Voisin added that the framework aligns with the UK’s wholesale digital strategy. The WGC has invited regulators, technology providers, and market participants to collaborate in shaping the initiative.