Blockchain could soon be settling gold transactions

Lynsey Barber
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Settling gold trades could be quicker via a distributed ledger (Source: Getty)

Gold trading in London could soon be settled using blockchain technology in a new initiative between Euroclear and itBit.

The settlement house is working with the New York startup to introduce its private distributed ledger Bankchain to the London gold market in a bid to make it more efficient.

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"Precious metals are the first use case for Bankchain, and London bullion is a market in which a distributed ledger can have an immediate benefit," said itBit chief exceutive Chad Cascarilla.

The technology which undepins bitcoin could be used to minimise risk, reduce costs and speed up trades, said Euroclear.

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Blockchain can create an immutable record of transactions and value and several new companies are exploring the applications beyond digital currency.

London startup Everledger s using blockchain technology to keep records of diamond ownership while Santander is testing it out for processing international payments at a faster pace.