Gold industry banking on blockchain to help secure its supply chain

The gold industry is betting that the blockchain will help to keep illicit bullion bars out of the international market.

London Bullion Market Association and the World Gold Council are developing a digital system to track gold through the supply chain, the organisations said in a joint statement on Monday. Using a blockchain-backed ledger, the Gold Bar Integrity Programme will capture the transaction history of bullion from mine to vault, they said.

The initiative aims to improve transparency and prevent gold mined by criminal gangs or in conflict zones ending up in bank vaults. The first phase will involve all parts of the gold supply chain from miners to refiners, and includes banks such as Standard Chartered Plc.

"The international trade in wholesale, physical gold depends on confidence," Ruth Crowell, chief executive officer of LBMA, said in the statement.