Major industry players, World Gold Council and Boston Consulting Group, have announced plans to build an architecture that would turn precious metals into liquid collateral for decentralized finance.
The working title of the platform is Gold as a Service. According to the press release, it is designed to connect traditional metal storage systems with crypto markets, addressing one of the sector’s key challenges — fragmentation.
According to the platform’s creators, gold-backed tokens are currently issued under different standards, with varying levels of reserve transparency and incompatible accounting mechanisms. This limits their use in DeFi and makes integration into smart contracts more difficult.
The proposed model outlines a unified approach to the issuance, accounting, and redemption of such tokens. This is expected to improve comparability between instruments and simplify their use across different platforms.
The model also highlights the potential to use tokenized gold as collateral — for example, in lending protocols or margin trading.
World Gold Council notes that the project is still at the discussion stage and invites members of the crypto industry to contribute to its development.