HSBC Takes Stab at Using Blockchain in London’s Gold Market

One of the world’s top bullion banks is bringing blockchain to the antiquated London gold market.

HSBC Holdings Plc has launched a platform that uses distributed ledger technology to tokenize ownership of physical gold held in its London vault, Mark Williamson, global head of FX and commodities partnerships and propositions, said in an interview. The new system creates digital tokens that represent gold bars, which can then be traded through the bank’s single-dealer platform.

HSBC isn’t the first to attempt using blockchain to simplify gold investing. Crypto startup Paxos in 2016 teamed up with Euroclear to build a blockchain-based ...