Posted on 11/02/2023 9:39:52 AM PDT by Migraine
(Kitco News) - HSBC Holdings Plc, one of the world’s top bullion banks, has announced the launch of a platform that utilizes distributed ledger technology (DLT) to tokenize the ownership of gold held in its London vault as it looks to help usher in the digital age for the London gold market.
According to a report from Bloomberg, the new system creates digital tokens representing gold bars, which can then be traded through the bank’s single-dealer platform. This approach “generates a permissioned digital representation of clients’ physical gold holdings,” said Mark Williamson, global head of FX and commodities partnerships and proposition at HSBC.
The system is also designed to make investing in gold more accessible, as each token issued by HSBC is equivalent to 0.001 troy ounces versus the standard 400 troy ounces for a London gold bar. While the service will initially focus on institutional investors, HSBC said in the future, the system will allow for direct investment in physical gold by retail investors as long as local regulations allow it.
While there have been previous efforts to offer tokenized gold, including the release of Pax Gold (PAXG) by stablecoin issuer Paxos and the launch of Kitco Gold by Kitco Metals, the entry of HSBC into the tokenized gold market is notable as the bank is one of the world’s largest custodians of precious metals and one of four clearers on the London gold market, which processes more than $30 billion in gold transactions every day.
There are currently around 698,000 gold bars stored in vaults in the Greater London area, valued at around $525 billion, according to the London Bullion Market Association. However, the London gold market still relies on manual record keeping and conducts trades entirely over the counter.
(Excerpt) Read more at HSBC launches tokenized gold platform for the London gold market ...
Yep; they get the gold, you get the token. Isn’t that fair?
Everything's fine until too many people try to cash in at once.
If you don’t hold it you don’t own it. Wasn’t HBSC on the verge of bankruptcy? They’re a sleazy bank I wouldn’t trust them at all.
Possession is 9/10th of the law: Nothing beats holding onto the real stuff.
if you don’t have the gold...you don’t own the gold....
PING!
FR Gold & Silver Ping List
(PM me to get on or off)
Now you can buy a globalist bank “stable coin” based on gold, supposedly held in London by financial cronies of the deep-state
Sign me up!
100110011100011000111100100111001010
Look Ma, It’s GOLD!!!
I’d buy cryptocurrency before I’d buy digital tokens purporting to represent gold in a vault in Londonistan.
And I will NEVER buy crypto.
Next they’ll be selling options on the tokens and then bundle those up into securities that can be rehypothecated into other financial assets.
And it’s gone (South Park joke).
Take note that HSBC has repeatedly been caught and fined by various governments for price-fixing gold prices. What could possibly go wrong with HSBC’s latest “tokenized gold” offering?
My world vagabond buddy said HSBCis the world-wide bank a traveler should put his money into. ATM fees and such. Can’t think of another. My Chase card takes up big fees just to use it.
No, really, it's just as good as the real thing, just lighter. I think I'll pass.🤔
“How far are we from fractional-reserve gold?”
Happened 90 years ago and was not even fractional after 1973.
NCGO- Non Collateralized Gold Obligations are traded under the term “The US Dollar” or “The buck” or “Greenbacks”
https://www.federalreserve.gov/faqs/currency_12770.htm
A new way of laundering cartel drug money?
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