CME Group, UK’s Royal Mint test blockchain-based gold trading platform

Reuters reports that Chicago-based exchange CME Group Inc and Britain's Royal Mint have started testing a blockchain-based platform for trading gold.

On Tuesday, CME group announced that they launched a gold-trading platform inspired by Bitcoin, using the emerging blockchain technology.

Key Details:

The new platform will allow institutions to trade "Royal Mint Gold," or RMG, a new digital token issued by the Royal Mint, which makes Britain's coins.

Each RMG will represent the digitized version of 1 gram of gold stored in the Royal Mint's vault.

Blockchain, which first emerged as the technology powering crypto currency bitcoin, is seen by financial institution as a powerful new tool to increase transparency and reduce the costs and complexity of a wide range of financial transactions.