HSBC Launches Platform Using Blockchain Tech to Expedite Gold ...


HSBC Holdings, one of the world’s leading bullion banks, aims to revolutionize the London gold market by harnessing the power of blockchain technology.


The bank has introduced a platform that uses distributed ledger technology to tokenize ownership of physical gold stored in its London vault, Bloomberg reported Wednesday (Nov. 1), citing an interview with Mark Williamson, global head of FX and commodities partnerships and propositions.


The new system generates digital tokens representing gold bars, facilitating easier trading through HSBC’s single-dealer platform, according to the report.


While HSBC is not the first to explore blockchain’s potential in simplifying gold investing, its prominent position in the bullion market sets it apart, the report said. As one of the largest custodians of precious metals globally and one of the four clearers in the London gold market, HSBC’s foray into blockchain-based gold trading could have a significant impact.


The current gold market in London relies on manual record-keeping and over-the-counter trades, resulting in a cumbersome process, per the report. By leveraging blockchain technology, HSBC aims to expedite and streamline the process, enabling clients to effortlessly track their gold ownership through the platform.


The use of blockchain technology in the gold market has gained attention in recent years, according to the report. In 2016, crypto startup Paxos collaborated with Euroclear to establish a blockchain-based settlement service for trades on the London bullion market. However, the partnership dissolved the following year. Nevertheless, Paxos still offers a digital token called Pax Gold, backed by physical gold, with a total market value of $479 million.


HSBC’s gold system is part of a broader initiative by the bank to leverage blockchain technology, the report said. It already operates a platform called HSBC Orion, facilitating the issuance and storage of assets like digital bonds.


In 2018, HSBC completed its first trade finance transaction on blockchain technology, collaborating with ING to complete a transaction for Cargill related to a shipment of soybeans transported from Argentina to Malaysia.


In addition, the adoption of distributed ledgers by major financial institutions such as J.P. Morgan Chase & Co., Euroclear and Goldman Sachs signals an acceleration in the implementation of blockchain technology in mainstream finance, per the Bloomberg report.


Source : / November 01, 2023 logo


240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act. How we keep your money safe.