The gold industry uses blockchain for supply chain management and fraud prevention

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Some of the gold industry’s best-known organizations have joined forces to launch a new “integrity program” that uses blockchain technology for supply chain management — a move designed to help market participants verify the authenticity of their precious metals.

London Bullion Market Association (LBMA) and World Gold Council (WGC) announced Monday that they are working together to develop an “international system of bullion integrity, chain of custody and provenance” based on blockchain technology developed by companies aXedras and Peer Ledger. The ledger is used to register and track bullion at every stage of the production and distribution cycle, including mining, vault storage, and purchase by jewelry makers.

The so-called Gold Bar Integrity Program is supported by organizations such as CME Group, Metalor, Barrick Gold, Brinks, Royal Canadian Mint, Newcrest Mining, Hummingbird Resources, Argos Heraeus SA, Asahi, Aura Minerals, Perth Mint and others.

Originally developed as a pilot project, the program will eventually be promoted for use across the gold industry, the LBMA and WGC said.

Supply chain management is cited as one of the most promising use cases of blockchain technology. As Cointelegraph reported, more than half of the companies included in the Forbes 2021 Blockchain 50 list were companies actively using distributed ledger technology Solving their supply chain and logistics problems. in April 2021, US defense company Lockheed Martin said it uses blockchain technology for supply chain management in Switzerland.

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Issues such as illegal mining, laundered gold, counterfeit bars and human rights abuses have made the gold industry particularly vulnerable to supply chain opacity. In 2020, the Organization for Economic Co-operation and Development brought out a report offering guidance on how gold producers could avoid contributing to “serious abuses” in the mining and production process.