Modernizing Gold Investment through Blockchain Tokenization

GoldForex (GFIN), a Belgian group active in gold brokerage, commissioned BE Blockchain to analyze how blockchain technology could support its strategic development. The study aimed to identify relevant use cases, particularly around traceability and gold tokenization. This assessment established the foundations for a potential future pilot, with special attention to compliance, technical feasibility, and economic viability.

Context

With most transactions still carried out over the phone or at physical counters, GFIN seeks to modernize its services to meet the expectations of a new generation of investors. The company aims to enhance the value of unallocated assets, reinforce the traceability of traded gold, simplify inheritance and transfer processes, and make gold investment more accessible. In this context, blockchain is being considered as a structural tool to embed these ambitions within a secure and interoperable technological framework.

Identified Challenges

• Partial traceability of gold holdings
  Difficulty guaranteeing the origin and history of gold bars and coins transferred across generations, especially in cases of resale or refining.

• Complex inheritance processes
  Lack of digital tools to identify and transfer assets during succession procedures.

• Incomplete customer digitalization
  Few transactions are currently conducted online, with heavy reliance on phone and in-person operations.

• Logistical costs from personalized storage
  The need to hold the exact amount of gold for each client leads to higher storage, insurance, and refining costs.

• Uncertain short-term adoption
  Mainstream adoption of crypto-related use cases remains limited in this segment, requiring behavioral testing and client education.

How Blockchain Can Address These Needs

• Blockchain-based transaction ledger
  Enhanced traceability of deposits and movements through immutable recordkeeping.

• Tokenization of unallocated gold
  Ability to issue digital tokens representing fractions of gold stored by GFIN, without directly affecting client-owned reserves.

• Verifiable Proof of Reserve
  Exploration of a public or shared audit mechanism ensuring full correspondence between issued tokens and physical holdings.

• Automated inheritance management
  Prototype system allowing notaries and beneficiaries to access certified information through a public or private blockchain.

• Web2.5 / Web3 interface
  Design of an intuitive access point for all profiles, with integration options for both traditional and Web3 wallets.

Potential Impact of Blockchain

✔ Unlocking dormant value
Unallocated gold could become a digital, revenue-generating asset via transaction fees.

✔ Greater transparency
Shared and auditable ledgers facilitate regulatory oversight and internal audits.

✔ Improved accessibility
Tokenized gold fractions open investment opportunities to new market segments.

✔ Process automation
Reduced manual workload for audits, inheritance, and client operations.

Conclusion

Through this diagnostic, BE Blockchain guided GFIN in a comprehensive feasibility analysis, combining technological research, benchmarking of existing solutions (PAXG, XAUt, VRO…), and the design of realistic, progressive implementation scenarios. This structured approach enables GFIN to independently assess the relevance of a potential blockchain project while respecting its operational, regulatory, and commercial constraints.

This exploration conducted with BE Blockchain allowed us to better understand the concrete applications of blockchain in our business and to assess the technical, regulatory, and commercial feasibility with objectivity. Sandro Ardizzone, Managing Director

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