Digital gold emerges as a new step in the evolution of gold trading. The World Gold Council proposes an innovative model to improve processes in this field.
Why Digital Gold Matters Now
On September 3, 2025, the World Gold Council (WGC) announced a revolutionary proposal called Wholesale Digital Gold. With global economic turmoil and growing interest in tokenized assets, gold is back in the limelight.
The model includes Pooled Gold Interests (PGIs), a novel settlement method that combines allocated gold's reliability and unallocated assets' flexibility. This breakthrough enables institutions to own portions of vaulted gold while transferring it quickly via digital records.
A Clash Between Tradition and Technology
The project will begin with a test program in London’s bullion market, the world gold trading hub. Trillions of dollars in transactions are cleared there each year, with settlement times typically lasting over two days.
With PGIs, institutions may instantly transfer ownership of vaulted gold, lowering expenses and minimizing counterparty risk. This structure also permits gold to be posted as collateral at venues like the CME without the need for physical delivery.
Risks and Considerations
While the promise is evident, challenges remain. Liquidity, regulatory certainty, and market trust will be critical factors in widespread adoption. If PGIs are perceived as overly complicated or fail to attract significant banks, the movement may halt.
However, the Wholesale Digital Gold initiative is an important step towards digital commodities, and successful implementation may spur similar transformations in silver, platinum, and possibly oil markets.
The Wholesale Digital Gold initiative could mark the most significant advance in the gold industry for decades, reflecting the fusion of timeless wealth and twenty-first-century technology. The success of PGIs presents both a competitive threat and collaborative opportunity.
