At over 1,000-years-old, The Royal Mint – the only institution licensed to provide coins in the UK – isn’t the type of business you might expect to be launching a blockchain.
However, in the face of new “technological and competitive” challenges, The Royal Mint is doing just that, announcing today that results of an investigation into how it could digitize its processes for the benefit for partners and customers.
As part of this larger drive, The Royal Mint has teamed with derivatives marketplace provider CME Group to build and launch a digital gold offering, one that could find it offering its users the ability to execute, settle and trade gold using a blockchain-based system.
David Janczewski, director of new business at The Royal Mint, explained that the product launch will see the company vaulting 400-oz gold bars, assigning ownership of these assets and allowing users to trade them peer to peer on a blockchain run by CME Group as a way to cut costs.
Janczewski told CoinDesk:
“There are costs associated with vaulting and storing gold and physical assets. It’s for this reason gold is often referred to as a negative return investment. We intend to address