The Instanbul Clearing, Settlement and Custody Bank (Takasbank), which is based in Turkey, has recently announced the launch of a new blockchain platform that would be used to trade physical gold.
According to the bank, the new platform is going to be called BiGA (which means one gram of gold) and it will enable the clients of the company to trade physical gold using the digital platform. All the gold will be secured at the Borsa Istanbul Stock Exchange (BIST).
Each gram of gold will be digitally represented as a “unit”. Each unit will be alike to a stablecoin and have its value tied to the official value of gold.
This new project was originally started last year, but it took some time before it was complete. According to Takasbank, the focus will be on confidential transactions and a way to securely store and trade gold. The platform will be compliant with local laws and the authorities and regulators will receive information about the trades.
Each user will store the units on a wallet that will work just like a cryptocurrency wallet. While the option of using the units for e-commerce will not be available at the start, the company has already revealed that there is interest in taking this idea forward.
Takasbank was created back in 1988 and the main clearing and settlement institution of the country. It is using the blockchain technology since last year and creating interesting products with it.
Several companies will be partners in the initiative. Ziraat Bankasi, the second-largest bank in the country, is one of them. Other financial institutions are Garanti BBVA, Vakif Bank, Kuveyt Turk, and Albaraka Turk.