The head of the US banking giant’s blockchain initiatives, Umar Farooq, says the idea behind tokenising the precious metal was to encode and track gold bars along each step of the supply chain to ensure the provenance and purity.
“They wrap a gold bar into a tamper-proof case electronically tagged, and they can track the gold bar from the mine to endpoint,” Farooq says. “The use case being, if you know it’s a socially responsible mine, someone will be willing to pay a higher spread on that gold versus if you don’t know where it comes from.”
Quorum has many more uses
Farooq states Quorum is not limited to being pegged to precious metals. He adds that groups who for now asked to remain in anonymity are considering using the blockchain platform in use cases in secondary and capital markets issuances.
“The entire value chain is going to head in that direction,” he comments.
“We are all building private networks, but there is a long-term thought process of what happens when you get to a point where you need to do private-public convergence, a connection,” Farooq says. “At that point, if you are in some ways a derivative of a public platform, it could become easier.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.