Will blockchain drive gold supply chain?

london — The gold market could be using the technology behind cryptocurrencies to track an almost $200 billion supply chain as soon as next year.

The London Bullion Market Association last week closed an invitation for submissions of ideas for how to track the metal as it’s dug out of remote mines, traded by middlemen and sold on to buyers scattered around the world. While the LBMA didn’t stipulate what form the system would take, most of the 25 respondents incorporated distributed-ledger technology in their proposals.

“The outcome will involve the

use of technology to help the market to mitigate potential threats to the integrity of the global precious metals market,” the association, which oversees the world’s biggest

spot gold market, said in an emailed response to questions. “A decision of which solution to implement will be made in the first half of 2019.”

The outcome will involve the use of technology to help mitigate potential threats to the integrity of the precious metals market

London Bullion Market Association

Markets in commodities are looking at using the technology that underpins cryptocurrencies to track ownership. Tracing gold supply is key to preventing metal that funds armed conflict from entering world markets, identifying owners and maintaining security from mine to vault. — Bloomberg