Turkey's Istanbul Clearing, Settlement and Custody Bank (Takasbank) has announced the launch of a physical gold-backed transfer system based on Blockchain technology.
Dubbed BIGA Digital Gold, the system allows peer-to-peer transfer of digitizable gold, a physical commodity, via blockchain technology.
Per the official website of the project, it aims to “establish an infrastructure that will allow for the execution of the transfer of dematerialized gold at certain standards with their physical equivalents kept in safe custody using blockchain technology.”
The system was first announced in September last year after the completion of trials of the project.
Speaking to a local Turkish news outlet AA, an official from Takasbank said: “This platform distinguishes itself from many similar projects in the world by allowing the use of blockchain technology to transfer digital assets based on physical commodities, not having any value of its own, and ensuring full compliance with existing regulations.”
Major partners showing support
The project also added major partners in the region, including state lenders Ziraat and Vakif, private lender Garanti BBVA, and private and state participation banks Albaraka Turk, Kuveyt Turk, and Ziraat Participation.
The announcement also detailed that the gold balances will be transferable around the clock among the participating financial institutions once an upgrade of the system is rolled out.
Per the bank, the blockchain-based system will primarily target three types of transactions - issuance, repayment, and transfers.
“There are also additional features on the blockchain-powered BIGA Platform, including integration with the Gold Transfer System, clearing authorization, as well as monitoring and reporting tools,” the announcement stated.
Gold-backed digital currencies are gaining a lot of popularity around the world recently. Last year, Stablecoin issuer Paxos expanded services with its gold-backed digital currencies to allow holders to redeem physical gold with their digital token.
