The World Gold Council (WGC) has unveiled a proposal to create a physically-backed shared infrastructure aimed at enhancing the growth of digital gold. In a white paper, the WGC introduced the concept of “Gold as a Service,” which would be a platform owned and operated by the Council. This shared infrastructure would allow market participants to develop digital gold products without the need to establish their own complete systems.
Despite the existence of digital gold products, many currently operate on fragmented infrastructure characterized by inconsistent custody standards, redemption terms, and governance frameworks, as noted by WGC Chief Strategy Officer Terry Heymann in comments to PTI. “The idea behind this initiative is to provide a shared infrastructure that could help gold play a more significant role in the digital economy. This infrastructure will be supported by physical gold, which will be accredited and regularly inspected to ensure responsible sourcing and accountability,” Heymann explained.
The proposed “Gold as a Service” aims to build trust, streamline processes, and enable digital gold to function as a cohesive and interoperable asset class suitable for the digital financial landscape. Heymann stated that this infrastructure has the potential to transform gold’s role in the financial system.
According to the WGC’s white paper, there is a noticeable shift in investor behavior towards digital access. Retail investors are increasingly utilizing digital platforms and anticipate features like fractional ownership, seamless transferability, and real-time settlement. The rising demand for digital exposure is underscored by recent inflows into Exchange Traded Funds (ETFs) and the growth of tokenized gold. However, the market for digital gold remains relatively small compared to broader markets, hindered by structural frictions that limit scale and integration.
These frictions obstruct fungibility, fragment liquidity, and constrain gold’s overall financial utility. Without a common infrastructure, digital gold risks becoming a collection of isolated products rather than a unified asset ecosystem. “We are just getting started on that. There’s been a continuous dialogue surrounding the evolving gold landscape and regulatory environment. We are planning to gather input from all stakeholders. This is a global initiative, and we are engaging with government representatives, market participants, and others to understand their concerns and expectations, as well as to fulfill the needs of stakeholders and consumers,” Heymann concluded.
