The post World Gold Council pushes gold-backed tokens for London’s multibillion dollar market appeared on BitcoinEthereumNews.com.

London’s $930 billion gold market is facing a major disruption, and it’s coming straight from the top. On Wednesday, the World Gold Council (WGC) announced its plan to introduce a digital token called the Pooled Gold Interest (PGI). This new token would be backed by real gold bars sitting inside London’s vaults, and for the first time, traders could own pieces of a massive 400-ounce bar without needing the entire thing. It’s legally enforceable, tradeable, and can even be used as collateral. “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,” said Mike Oswin, the WGC’s global head of market structure and innovation. He told CNBC that it could be used for simple investments or as collateral. The council believes this kind of token will bring in new players and give them more ways to use gold, especially in a market where prices have been breaking records this year. WGC wants digital gold to function as real collateral Right now, the gold market operates in two main ways, allocated and unallocated. Allocated gold means investors directly own a specific bar or coin. Unallocated gold gives them a claim to a certain amount of metal, but not a specific bar. This second type is the most common globally. The problem? If the institution storing the gold fails, investors might lose their claim. That’s one of the core issues the WGC is trying to fix with PGI tokens. Oswin said the main goal in the first stage is to make gold easier to use as collateral. Allocated gold is technically accepted in many financial markets as a backing asset, but moving the physical metal around is such a hassle that it…

---

Filed under: News - @ September 8, 2025 12:25 am