Turkey Launches Physically-Backed Gold Transfer System with Blockchain

TakasbankTakasbank, a subsidiary of Borsa Istanbul, has launched a physically-backed, blockchain-based electronic gold transfer system that allows “peer-to-peer transfer of digitizable gold, a physical commodity, via blockchain technology”, according to the announcement.

The system, called BIGA Digital Gold, was designed since 2018 as Turkey’s Istanbul Clearing, Settlement and Custody Bank focused on creating a structure for digitizing physical commodities and using blockchain in the financial sector.

Going by the name of BIGA Digital Gold, the system provides three main transactions — issuance, repayment, and transfer — and assets can be traded on the platform as digital values called “BIGA”. The value represents “a gram of gold that is physically stored” in vaults of the Borsa Istanbul Turkish stock exchange.

“As a result of our efforts, we created the Digital Asset Transfer Platform, which 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. 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,” said the
official statement.

State lenders Ziraat and Vakif, private lender Garanti BBVA, and private and state participation banks Albaraka Turk, Kuveyt Turk, and Ziraat Participation, are involved in the blockchain-powered financial network. The participants have upgraded their systems to be able to transfer gold balances 24/7.

Regarding physically-backed gold technologies, CoinFLEX, a US-based cryptocurrency derivatives trading provider offers physically-delivered crypto derivatives including futures contracts on Bitcoin, Bitcoin Cash, and Ethereum with up to 20 times leverage.

Last year, GMEX Group, the provider of innovative multi-asset exchange and post-trade technology acquired a 30 per cent stake in USAVE Blockchain in order to build digital Monaco Gold Spot Exchange (MGX) enabling fair and secure trading of physical eco-responsible gold. The MGX will be an access point for legally sourced gold from around the world, in addition to the gold produced through the USAVE ecosystem.