Turkey’s Istanbul Clearing, Settlement, and Custody Bank (Takasbank) has announced the launch of BIGA Digital Gold, a blockchain-based system that enables peer-to-peer transfers of digitizable gold, Turkish news outlet AA reports.
In a statement announcing the launch, Takasbank claimed that its commodity transfer system will allow users to trade digital assets called BIGAs. Each BIGA will reportedly be backed by a single gram of physical gold, stored in the Borsa Istanbul Turkish stock exchange vaults. According to the bank, BIGA Digital Gold will be legally compliant as well:
"As a result of our efforts, we created the Digital Asset Transfer Platform, which 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.”
BIGA Digital Gold will facilitate three types of transactions for its users, including issuance, repayment, and transfer. The new system will be integrated with the Gold Transfer System, and include tools for monitoring and reporting, as well as other features.
The bank’s partners in the venture include a number of notable Turkish financial entities:
Taking part in the system are state lenders Ziraat and Vakif, private lender Garanti BBVA, and private and state participation banks Albaraka Turk, Kuveyt Turk and Ziraat Participation.
The bank also stressed that the first blockchain-powered financial network was created with participation banks, which were able to transfer gold balances 24/7 after upgrading their internal systems.