Blockchain Quorum the American banking giant JPMorgan Chase used for tokenization of gold bars, which gives the possibility of “socially responsible miners” to get the award to price. About this Financial Review said the head of the blockchain initiatives of the Bank Umar Farooq (Umar Farooq).

Tokenization assets — digitization and places them into the distributed registry was a Central theme of the conference Sibos in Sydney, said the publication. This process not only allows effective tracking of the supply chain, to distribute the right of ownership on a costly asset, but also to eliminate intermediaries in trade, reducing costs and risks.

According to Farouk, the tokenization of assets can create in the medium term, new opportunities for global traders.

For example, he continued, “there are people outside our company that use Quorum in order to mark the gold.” They “wrapped gold bullion, protected from unauthorized access phrase with electronic marking”.

This allows you to track the ingot from the mine to the end user. The buyer, knowing that the gold mined in a socially responsible mine, is willing to pay for it at the upper limit, said Farooq. He added that another such example are diamonds.

We will remind that earlier the London Association of participants of precious metals market (LBMA) decided to use blockchain technology to modernize and increase the transparency of the supply chains of gold. And the Royal mint of great Britain (The Royal Mint) last year we created a blockchain-based tracking system for trade in gold bullion.