Takasbank (or Turkey’s Istanbul Clearing, Settlement and Custody Bank) has announced that it will be launching a blockchain-based physical gold-backed transfer system.
The system is called BIGA Digital Gold and allows P2P gold transfer through blockchain. The transfer is valid for digitizable gold only.
According to the announcement what the new system tries to accomplish is build an infrastructure that allows the transfer of dematerialized gold within specific standards with their physical equivalents that are stored in custody using blockchain. According to press, the BIGA Digital Gold was announced back in September 2019, after trials for the project were started last year.
A representative of Takasbank said the following, as reported by Finance Magnates:
This platform distinguishes itself from many similar projects in the world by allowing the use of blockchain technology to transfer digital assets based on physical commodities, not having any value of its own, and ensuring full compliance with existing regulations.
Apart from its unique features, the project also boasts leading partners in the region such as Albaraka Turk, Ziraat Participation, Kuveyt Turk, Garanti BBVA, state lenders Vakif and Ziraat.
Once the system gets an upgrade, gold will be transferable 24/7 among all participating parties.
Takasbank has reportedly targeted three types of transactions: transfers, repayment and issuance. The announcement also accentuated that there will be more features that the system offers such as clearing authorization, reporting and monitoring tools.
The spread of digital currencies backed by gold are rising stars in the industry, it seems. For example, back in May 2019, Leaprate reported that Russia may be looking into gold-backed cryptocurrency, one that might complement the ruble or even replace it.