A new platform has been developed by the World Gold Council, a leading gold trade body, and the Boston Consulting Group to modernise the way gold functions as a product in digital financial systems.
The World Gold Council said on Thursday that it has published a white paper on “Gold as a Service,” a new platform to “support the issuance and operation of scalable, interoperable digital gold products.”
The open platform would link the digital mechanisms used to issue and oversee tokenised gold products with the actual custody of gold.
The World Gold Council stated, “The model aims to reduce operational complexity, improve access and enable greater consistency for all digital gold products by standardising essential market processes like custody coordination, reconciliation, compliance and redemption.”
Crypto-native tokenized gold products include Tether Gold or Pax Gold, which have formed their own custody, compliance and redemption models, but the World Gold Council’s standard could have more sway with institutions due to the trade group’s prominence.
Key features of the Gold as a Service would include standardizing tokenized gold issuance and management, increasing digital gold’s fungibility, embedding audits and assurance, enabling interoperability with existing finance rails, and improving liquidity in lending and borrowing markets.
World Gold Council CEO, David Tait, said that financial services are undergoing a “rapid and pervasive digital transformation” and gold must also evolve to maintain its role in the global financial system.
“Shared infrastructure can help gold become more accessible, more easily traded and fully integrated into modern financial systems — ensuring it remains as relevant tomorrow as it has been for millennia,” he added.
Matthias Tauber, a managing director and senior partner at Boston Consulting Group, said, “The question is no longer whether gold will be digital; it’s how it can participate in modern financial systems without compromising physical integrity.”
According to RWA.xyz, tokenized commodities such as gold account for around $5.5 billion, or 20% of the total on-chain value of tokenized real-world assets, a segment that has grown by 340% over the past 12 months, as demand for gold has skyrocketed.
Tether’s tokenized gold product has a market capitalization of $2.6 billion, up 17% over the past 12 months, while Pax Gold has a market cap of $2.3 billion, according to CoinGecko.
On Thursday, crypto exchange Bybit launched a yield-bearing tokenized gold product that lets users earn interest on Tether Gold.
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