The World Gold Council (WGC) has announced the launch of Pooled Gold Interest tokens in London, aiming to modernize the $930 billion gold market through digital ownership.
PGI Tokens for Institutional Investors
The World Gold Council launches Pooled Gold Interest (PGI) tokens backed by physical gold stored in London, targeting institutional investors. Key players involved in the project include major banks such as HSBC and JPMorgan. This initiative reflects WGC's continuous effort to bring compliance-driven tokenization to the forefront.
Institutions Evaluate Gold Tokenization
The announcement is expected to significantly affect gold market liquidity, potentially opening new collateralization opportunities. Institutions view tokenization of gold as a promising evolution for asset management. Mike Oswin, Global Head of Market Structure and Innovation at the World Gold Council, stated:
> "This is a way to be able to get into the market, hold a digital representation of gold with full legal entitlement, with full confidence that the gold is there."
Analyzing Previous Gold-Backed Initiatives
Previous attempts at gold-tokenization, such as XAUT and PAXG, faced adoption and trust challenges. WGC's past efforts, like the Gold Bar Integrity Program, saw limited engagement, highlighting industry conservatism. Experts suggest that if successful, the PGI initiative could shift dynamics similarly to gold ETFs, though gold's established market presents unique hurdles not seen in purely digital assets.
The launch of Pooled Gold Interest tokens marks a significant step towards the digitization of the gold market. Despite existing skepticism, this initiative could greatly impact asset management and liquidity within this traditional sector.
