IEX to create blockchain-based gold exchange

The IEX Group is trying to implement the blockchain technology into its upcoming gold exchange.

IEX’s TradeWind Markets is reportedly already working on utilizing the power of blockchain to bring transparency to this very popular but opaque instrument.

TradeWind’s board member and a managing director at Bain Capital Ventures, Matt Harris, told the Reuters news agency a solution might reach the market in a few months. Describing the problem with the current way the gold market works, he said: “It’s too slow, it’s opaque as to who owns what and when along the way, and there’s lots of room for error that requires manual reconciliation. A system that was instantly self-reconciling and 100 percent transparent would solve a lot of problems.”

The new gold exchange is said to leverage the technology used by IEX for its new equities exchange, The Investors’ Exchange, which launched last month after operating for more than two years as a dark pool. TradeWind plans to utilize the distributed settlement system in blockchain to eliminate the need for third party verification by giving participants an up-to-the-minute record of all transactions.