The World Gold Council (WGC) has introduced a proposal for an updated digital gold ecosystem aimed at modernizing trading and ownership mechanisms.
Overview of the Initiative
The World Gold Council is initiating a project to create a Pooled Gold Interests (PGI) instrument for the global market. This could change the perception of gold as a financial asset and enhance its liquidity.
Key Aspects and Participants
Key participants in this initiative include the WGC and the legal firm Linklaters. Mike Oswin from the WGC emphasizes that this initiative may change the ways gold is owned and utilized in the market.
Potential Market Impacts
The council's proposal includes creating a robust legal framework that may enhance the efficiency of the global gold market. It is expected to impact gold-backed digital assets and improve liquidity. Additionally, an increase in Total Value Locked (TVL) in related digital assets is anticipated.
Experts suggest that the new initiative by the World Gold Council could significantly reshape the market, enhance legal and technological aspects of gold ownership, and strengthen London's role in the global gold market.
