Gold industry taps blockchain for supply chain management and fraud prevention

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A number of the most outstanding organizations within the gold trade have joined forces to launch a brand new “integrity program” that makes use of blockchain expertise for provide chain administration — a transfer that’s meant to assist market individuals confirm the authenticity of their bullion.

London Bullion Market Affiliation (LBMA) and the World Gold Council (WGC) announced Monday that they’re collaborating to develop an “worldwide system of gold bar integrity, chain of custody and provenance” that’s primarily based on blockchain expertise developed by firms aXedras and Peer Ledger. The ledger can be used to register and monitor gold bars at every stage of the manufacturing and distribution cycle, together with mining, vaulting and buy by jewellery producers. 

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The so-called Gold Bar Integrity Programme is being supported by organizations equivalent to CME Group, Metalor, Barrick Gold, Brinks, Royal Canadian Mint, Newcrest Mining, Hummingbird Assets, Argos Heraeus SA, Asahi, Aura Minerals, Perth Mint and others.

Initially developed as a pilot, this system will ultimately be promoted to be used throughout the gold trade, LBMA and WGC mentioned.

Provide chain administration is cited as some of the promising use instances of blockchain expertise. As Cointelegraph reported, greater than half of the businesses added to Forbes’ 2021 Blockchain 50 listing have been enterprises actively utilizing distributed ledger expertise to solve their supply chain and logistics issues. In April 2021, American defense contractor Lockheed Martin mentioned it was utilizing blockchain expertise for provide chain administration in Switzerland.

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Points equivalent to unlawful mining, laundered gold, faux bullion bars and human rights abuses have made the gold trade particularly weak to produce chain opacity. In 2020, the Group for Financial Cooperation and Improvement launched a report that gives steering on how gold producers might keep away from contributing to “severe abuses” within the mining and manufacturing course of.