Tokenization Can Turn Gold from a 'Dead Asset' into a Useful Tool and Grow the Market – LBMA Experts

At the LBMA Global Precious Metals Conference, experts explored how tokenizing gold could boost its utility and draw more capital into the sector. Vincent Domien of ICBC Standard Bank observed that gold often sits idle on balance sheets amid rising prices, while cumbersome collateral processes limit its use; tokenization would enable instant transfers for swaps and margin calls. Mike Oswin of the World Gold Council noted this could unlock billions in fresh collateral. James Willis of HSBC highlighted that digital offerings, such as the bank’s Hong Kong token, attract new retail investors through simpler buying and transfers. The World Gold Council estimates retail investment assets at $6-7 trillion versus only $50-60 billion in vaulted gold and tokens, suggesting successful products will lift holdings and trading frequency. Trust remains essential, requiring physical backing and clear ownership rights. James Chapman of Hilltop Consulting and the council are advancing the Wholesale Digital Gold initiative to blend allocated and unallocated benefits, offering a complementary way to hold, transfer and settle bullion without replacing existing structures.