World Gold Council Launches Wholesale Digital Gold Ecosystem to Transform Gold Ownership and Trading
The World Gold Council (WGC), in collaboration with British law firm Linklaters and Hilltop Walk Consulting, has introduced a pioneering vision to transform the global gold market: the Wholesale Digital Gold ecosystem. This initiative aims to modernize how gold is owned, traded, and utilized worldwide.
Currently, the wholesale gold market operates under two main structures. Allocated gold involves direct ownership of specific physical bars but is operationally complex.
Unallocated gold, while more liquid and cost-efficient, exposes investors to the credit risk of the institution holding the account.
Building on the Financial Markets Standards Board’s (FMSB) Precious Metals Spotlight Reviews and in consultation with industry stakeholders, the WGC and its partners propose a third approach: the Wholesale Digital Gold ecosystem. This model bridges the gap between allocated and unallocated gold structures.
At the core of this ecosystem are pooled gold interests (PGIs)—electronically transferable fractional interests in physical gold bars stored in approved vaults.
PGIs offer the advantages of allocated gold, including physical ownership, while providing added flexibility:
Easier and secure transfer of gold interests between parties
Ownership of fractional interests in a pool of vaulted gold bars
Broader and simplified use of gold, including as collateral
Mike Oswin, WGC’s Global Head of Market Structure and Innovation, said:
“Wholesale Digital Gold is a vision to transform the way gold is owned and traded. The UK government’s Financial Markets Digital Strategy highlights the importance of digitalizing wholesale markets to drive efficiency, resilience, and innovation—goals that align closely with our initiative.”
As the world’s leading gold trading hub, London clears an average of 20 million ounces daily. Oswin emphasized that introducing a robust legal and technological framework for gold ownership and settlement will further reinforce London’s global leadership in gold trading.
The Wholesale Digital Gold ecosystem is technology-neutral and supports initiatives such as the WGC and London Bullion Market Association’s Gold Bar Integrity programme.
Linklaters has developed a legal framework to underpin the issuance and transfer of PGIs, ensuring clear beneficial ownership of physical gold held in custody.
Richard Hay, Partner and FinTech UK Head at Linklaters, commented:
“This structure provides legal certainty and operational flexibility, essential for innovation in precious metals trading.
By enabling secure, transparent, and efficient digital ownership of fractional gold interests, we are unlocking new opportunities for market participants and reinforcing London’s leadership in the gold market.”
Michael Voisin of Linklaters added:
“We are proud to build on our record of delivering innovation in financial markets through the design of a novel legal infrastructure supporting Wholesale Digital Gold.”
The WGC is now inviting market participants, regulators, and technology providers to engage with this initiative and help shape the future of global gold trading.
