CME Group in Final Preparations to Launch Blockchain-Based Gold Trading Platform

U.S.-based derivatives exchange CME Group today announced it is in the final stages of testing a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based digital platform for dealing in gold. CME Group has partnered with the UK government-owned Royal Mint to facilitate the transfer of ownership of digital gold using blockchain, the technology that underpins Bitcoin.

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The platform will see Britain's Royal Mint, which is permitted to strike British coins, issue a product dubbed "Royal Mint Gold", or RMG which then will be traded via the platform run by the CME Group. One RMG will equate to one gram of gold. In addition, Royal Mint will put gold bars into its secure vaults, the equivalent amount of so-called digitised gold will be created, with ownership to be assigned on the blockchain.

The digitised product makes investing in the commodity easier and cheaper, specifically for pension funds and other institutional traders which will be able to buy and sell gold using a Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term that will run 24 hours a day.

More digital RMG can be issued depending on market demand, with CME and Royal Mint expecting to issue up to $1 billion worth of gold at launch. Royal Mint and the CME Group say the innovative new product strips away management fees and ongoing storage charges that are usually levied for traditional spot gold holdings. RMG holders will have the option to converting their digital records into physical gold with no storage costs.