Digital trading settlement and ownership solution for physical precious metals

Challenge

• Gold market stakeholders, including bullion banks, investors, and custodians, share common goals to reduce post-trade risk, increase transparency, standardize frameworks, and experience more efficient and cost-effective transacting processes.
• A solution is needed to meet the needs of these different stakeholders—all of whom hold different functional and economic roles in the gold ecosystem but need to be able to interact effectively.
• To drive value, stakeholders need to interact in a consistent manner and on the same system.

Solution

• Tradewind Markets has developed and launched VaultChain™, a digital trading, settlement and ownership solution for physical precious metals.
• This is a better way to manage the ownership of gold by using cloud-based technology solutions and distributed ledger technology (DLT) to simplify processes, increase transparency, and open new opportunities.

Why Corda?

• Tradewind selected R3’s Corda platform due to its ability to isolate data, offer privacy, and provide a developer-friendly technology

Results

• VaultChain™ combines the simplicity of an ETF or derivative with an assurance that investors can assume custody of their metal.
• It is a simple and direct way for investors to gain exposure to physical gold by bringing a degree of technical homogeneity to gold investment, settlement, and ownership.