Daily Gold Market Report

Digital Asset Week 2023
Major Financial Institutions Embrace Tokenization and Digital Assets

(USAGOLD – 11/20/2023) Gold is moderately down as we go into the holiday week. Gold is trading at $1,968.67, down $12.15. Silver is trading at $23.41, down 31 cents. The Digital Asset Week (DAW23) conference was held in London last week and marked a significant step in the adoption of digital assets by major financial institutions. Key players like JP Morgan, BNY Mellon, BlackRock, and others shared their strategies for transitioning from proof of concept to production applications in digital assets. The focus was on liquidity, operational efficiency, and the development of new products like tokenized ETFs, securities lending, and repo. The conference also highlighted the growing interest in the tokenization of various assets, including precious metals, property, and private markets, with an emphasis on private protocols and networks to comply with jurisdictional laws and regulations.

The discussion also addressed the challenges in scaling digital assets, particularly the need for cash on ledger as a key enabler. Deposit tokens and institutional settlement tokens are seen as leading solutions, with central security depositories and protocol interoperability identified as significant friction points. 2024 is anticipated as crucial for advancing digital financial market infrastructure and digital assets into production, with a broader adoption expected in 2025 and beyond. Forbes highlights innovative projects like JP Morgan’s intraday repo trading product, HSBC’s tokenized gold, and various initiatives by leading financial institutions in digital custody and securities servicing, underlining the growing momentum in the digital asset space.