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LBMA Looking Into Blockchain To Boost Gold-Supply Integrity

Kitco News

(Kitco News) - The London Bullion Market Association is seeking proposals on how to develop a “blockchain” for gold to underpin integrity of the supply of the metal, the organization announced Tuesday.

According to news reports, this would track metal to its origins, thereby helping prevent use of gold for financing terrorism, money laundering and helping resolve the problem of “conflict minerals.”

The LBMA said it will soon be launching a “request for proposal.” This initiative is aimed at building on the LBMA’s “responsible sourcing program.”

In addition, officials are looking at ways to minimize risks associated with fraud and breaches of security, the LBMA said. The goal would be to ensure that bars are what their markings purport them to be and have thus been produced to the standard associated with LBMA-accredited refiners.

“The LBMA is continually looking at ways in which investors can be assured their purchase of gold bars addresses supply chain risks as well as protecting them against issues arising from fraud and breaches of security,” said Ruth Crowell, chief executive officer of the gold-industry organization. “The LBMA looks forward to seeing the innovative ways respondents devise technology which can further enhance the responsible sourcing program.”

LBMA officials say they welcome approaches from companies that can provide technology for either the supply chain or security. For further information they should contact Sakhila Mirza at sakhila.mirza@lbma.org.uk.

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