The World Gold Council could develop a $900 billion physical market for Financial Times (FT) Gold To London’s Overhoul London, reported Wednesday.
Each unit of digital gold, or “Pooled Gold Profits” (PGI), allows investors to purchase face value ownership of gold bullion. The product will be tested starting the first quarter along with commercial participants in London, including major banks and traders, the report says.
Digitalization is a requirement for gold to expand its market reach, World Gold Council CEO David Tate said in an interview with the newspaper.
“We are trying to standardize the digital layer of gold so that various financial products used in other markets can be used in future gold markets,” Tate said.
Gold hit a record price of more than $3,550 per ounce this week, doubled its price over the past two years. This is because its reputation as a safe haven continues to be supported amid geopolitical tensions.
The World Gold Council did not immediately respond to Coindesk’s request for further comment.
