Takasbank (Turkey’s Istanbul Clearing, Settlement and Custody Bank) has announced the launch of a physical gold-backed transfer system based on blockchain technology. The BiGA system was first announced in September 2019.
Takasbank launched BiGA Digital Gold to provide banks with a blockchain-based system for the issuance, repayment and transfer of digitised gold, according to an announcement on Dec. 30. The bank said the blockchain platform enables total privacy of the transactions.
The system enables participating banks to use blockchain tech to transfer digital assets representing a quantity of physical gold. Each asset represents a gram of gold that is physically stored in vaults of the Borsa Istanbul (BIST) Turkish stock exchange.
According to an official with Takasbank, BiGA platform distinguishes itself from many similar projects in the world by allowing the use of blockchain technology to transfer digital assets based on physical commodities, not having any value of its own, and ensuring full compliance with existing regulations.
The Bank launched the BiGA Digital Gold platform with major partners in the region that includes state lenders Ziraat and Vakif, private lender Garanti BBVA, and private and state participation banks Albaraka Turk, Kuveyt Turk, and Ziraat.
The announcement also detailed that the gold balances will be transferable around the clock among the participating financial institutions. The blockchain-based system will primarily target three types of transactions – issuance, repayment, and transfers. It was also mentioned in the announcement that there are additional features on the blockchain-powered BiGA Platform, including integration with the Gold Transfer System, clearing authorisation, as well as monitoring and reporting tools.