- The LBMA launches Gold Bar Integrity Database to standardize gold sourcing data.
- System creates digital twins for gold bars, grains, and semi-finished products to track provenance.
- Refiners now upload responsible sourcing data directly instead of using email.
- Technology based on R3 Corda enterprise blockchain ensures data privacy.
- Platform could support gold tokenization for settlement risk reduction.
The London Bullion Market Association (LBMA) has implemented its Gold Bar Integrity (GBI) Database, marking a shift toward digital standardization in gold trading and tracking. The system centralizes data about gold sourcing while maintaining custodial ownership privacy through the Axedras Bullion Integrity Ledger.
Digital Infrastructure Evolution
The collaboration between LBMA and the World Gold Council with Swiss startup Axedras began in March 2022. The partnership expanded when the World Gold Council made an investment in the following months, leading to the GBI database contract award in March 2023.
Ruth Crowell, LBMA CEO, stated: “The GBI Database will initially focus on two crucial datasets: Refiner Data and London Vault Data. This means faster, more secure data collection and processing.”
Operational Changes
The new system replaces the previous email-based reporting method for refiners. The digital platform creates virtual representations of physical gold assets, including bars, grains, and semi-finished products, establishing a verifiable supply chain record.
London custodians must now submit detailed information for both gold and silver bars, enhancing market transparency while maintaining data security.
Blockchain Security Features
The Axedras system, built on R3 Corda blockchain technology, implements strict data access controls. Unlike traditional encryption methods where encrypted data exists on multiple nodes, the platform restricts actual data possession to authorized parties only.
This technology could support gold tokenization initiatives, following HSBC‘s successful vault gold tokenization in 2022. Such developments may reduce settlement risks and enable the use of vaulted gold as tokenized collateral for clearing house margin requirements.
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