World Gold Council Plans to Introduce Wholesale Digital Gold

The London-headquartered World Gold Council (WGC), along with Linklaters and Hilltop Walk Consulting, have unveiled a pioneering vision to transform the $900 billion global gold market through the introduction of Wholesale Digital Gold, a transformative concept that will enhance how the yellow metal is owned, traded, and utilised.

This may well create major changes as to the collateralisation, trading and settlement of gold, whilst at the same time transforming the $900 Billion gold market centred in London.

WGC is an international trade association for the gold industry, whose members are gold mining companies. The WGC is a market development organisation for the gold industry and works to champion the use of gold as a strategic asset.

Tait said that the digitisation of gold will broaden its market reach and they are trying to standardise that digital layer of gold such that the various financial products used in other markets can be used going forward in the gold market.

Gold has recently proved that it is still extremely popular especially as a safe haven as only last week it reached a record price of $3,550 per ounce having also doubled in price over the last two years.

Mike Oswin, Global Head of Market Structure and Innovation, World Gold Council, said that Wholesale Digital Gold is a vision to transform the way gold is owned and traded.

The UK Government’s recent publication on Financial Markets Digital Strategy highlights the importance of digitalising wholesale markets to drive efficiency, resilience, and innovation—an ambition that closely aligns with our own, he said.

“As the world’s leading gold trading hub, with the Loco London market clearing an average of 20 million ounces daily, the UK is well positioned to lead the way in improving the way gold is traded and cleared to the benefit of all market participants. Introducing a robust legal structure and innovative technology for gold ownership and settlement, will only reinforce London’s role in the global gold market,” he added.

Two Key Structures

Each digital unit of gold will be known as PGI’s (Pooled Gold Interests) and this will allow investors to buy a form of fractional interest in gold bullion. Over many years the OTC (over-the-counter) gold has been settled through two key structures – allocated gold and unallocated gold

Allocated gold is a form of gold ownership where physical gold is purchased (bars) and are stored in a secure vault and is legally owned by the purchaser and ownership is insulated from credit risks of the custodian bank. However, in order to attain this status, there is a limitation on holding only whole-bar multiples and increased operational complexity.

Unallocated gold is where specific gold bars are not set aside for the holder, rather the holder has a contractual right against the institution where their unallocated gold is held in respect of their entitlement.

It has traditionally provided holders with greater liquidity through deeper markets and quick and simple settlement mechanics. However, the status for unallocated gold is that it requires holders to take the credit risk against the institution where their unallocated gold is held.

This proposal from WGC would create a third type of transaction for the OTC gold in London and the pilot scheme due to be launched at the beginning of Q1 in 2026, will include major banks and trading houses as joint or co-owners of the underlying gold.

This third pillar in the OTC market is known as the Wholesale Digital Gold Ecosystem (the ECOSYSTEM) and will underpin as mentioned above, the new form of digital gold bars the pooled gold interests or PGI.