World Gold Council unveils standardisation framework for tokenised gold

JH Kim

Summary

The World Gold Council said it has announced a standardisation framework to enhance the tokenised gold market’s credibility and scalability.
It said the framework focuses on bolstering trust in collateral assets and ensuring fungibility among tokens through the “Gold as a Service” concept and continuous audit and verification systems.
It added that the standardisation effort could serve as a catalyst for changes in the tokenised gold market structure, and that the World Gold Council is expected to move in earnest to expand the tokenised gold ecosystem going forward.

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The World Gold Council has announced a standardisation framework aimed at enhancing the credibility and scalability of the tokenised gold market.

According to Decrypt, a media outlet specialising in virtual assets (cryptocurrencies), the council judged that gold holding and management processes are a key barrier to entry for issuing gold-backed tokens, and proposed the concept of “Gold as a Service.” This is a structure designed to allow token issuers to use physical gold reserve management infrastructure as a shared network.

The framework focuses on boosting trust in collateral assets through continuous audit and verification systems, while also securing fungibility (standardisation) among tokens.

Given that the tokenised gold market has so far been shaped largely by a handful of cryptocurrency firms that built their own custody and issuance structures, the standardisation push is seen as a potential catalyst for changes in market structure.

The World Gold Council currently has 29 member companies and is expected to step up efforts to expand the tokenised gold ecosystem going forward.