David Tait, chief executive of the World Gold Council, said the miners’ group is aiming to transform London’s $900 billion physical precious metals market into a digital format. The initiative would allow traders to “pass gold digitally around the gold ecosystem, as collateral, for the first time.”
“We are trying to standardize that digital layer of gold so that the same types of financial products used in other markets can be applied to gold going forward,” Tait told the Financial Times.
The objective behind digital gold, according to Tait, is to change the perception of gold as a static asset. While the metal remains highly valued for its physical form and role as a “safe haven asset,” it is also competing with more modernized alternatives such as cryptocurrencies.
Gold has seen significant gains over the past three years—doubling in value and hitting a record high this week—but most investors still view it as a fixed, non-yielding asset. By digitalizing gold, Tait hopes it can be more actively used for margins and collateral, helping generate returns for investors.
“For banks, from a collateral perspective, they will make a lot of money, as they’ll finally have the chance to use the gold on their balance sheets as collateral,” Tait said.
The new digital unit will be called “pooled gold interest” (PGI). It will enable banks and investors to hold fractional ownership of physical gold through segregated accounts. The World Gold Council intends to roll out a pilot program for PGI with commercial participants in the first quarter of 2026.
Digital Gold in the Crypto Space
Digitizing gold is not an entirely new concept. Several crypto firms have attempted to launch digital assets backed by gold reserves, but only a few have achieved long-term success.
According to Blockdata, 24 out of 66 active stablecoin projects have been discontinued, with two-thirds of those tied to gold reserves.
Among the most successful are Tether Gold (XAUT) and Pax Gold (PAXG), each boasting a market capitalization of more than $1 billion since launch.
Bitcoin (BTC) itself has often been described as “digital gold,” given its similarities to the physical metal and its tendency to move in tandem with other safe-haven assets.
Gold’s strong performance is often followed closely by a Bitcoin rally. As the chart shows, gold’s gains are typically fueled by its safe-haven appeal, central bank purchases, and broader macroeconomic uncertainty. Bitcoin, while also benefiting from investor moves away from fiat currencies, tends to react more dynamically—historically outperforming in the wake of gold rallies.
What sets the World Gold Council’s initiative apart from earlier gold-backed tokens is its structure. According to the white paper, the WGC’s plan would enable gold ownership through London’s over-the-counter (OTC) market, with major banks and trading houses participating as co-owners of the underlying physical gold.
