TradeWind Launches Blockchain Platform to Enhance Gold Trading

The centuries-old gold trade has acquired another digital venue.

by Kalina Tekelieva
27 March • 2 min
In News

US fintech company TradeWind announced on Monday it had launched a blockchain-based gold exchange aimed at modernizing the trading and settlement of gold.

The gold market is rather manual, where trading is mostly done over the phone, via mail, chats and faxes, TradeWind president Matt Trudeau told Bloomberg on Monday. Therefore, the US firm decided to establish a new gold exchange, which simplifies the trading and cuts transaction costs, Trudeau said.

How does the exchange work?

Gold trading goes digital on the Tradewind market via an exchange technology backed by a blockchain application called VaultChain. Clients will access the platform through a network of authorized dealers and will own gold in fractional quantities in wallets on the exchange. No management and administrative fees will be charged.

The Royal Canadian Mint, a crown corporation of Canada, will provide storage for the gold registered on the exchange and will guarantee the physical delivery of gold to the traders.

Gold and Blockchain

The TradeWind platform, which went live on Friday, joined other gold exchanges that use elements of blockchain technology, like GoldMint, RMG and Vaultoro.

blockchain_body

“Gold and blockchain technology form a uniquely compelling marriage,” Trudeau commented in the company announcement. TradeWind co-founder Mike Haughton added that blockchain provides a direct link between players on the precious metals market, thus helping create a more efficient, secure, and profitable business.

Peter Grosskopf, CEO of money manager Sprott, which owns 20% of Tradewind, said for Bloomberg that the digitization of gold gives the gold market a chance to win back the market share it has lost to financial assets since the 1970s.