The global gold market is preparing for a "digital revolution" from 2026.

Gold bars at a trading floor in Seoul, South Korea. (Photo: Yonhap/VNA)

Gold bars at a trading floor in Seoul, South Korea. Photo: Yonhap/TTXVN

The World Gold Council (WGC) recently announced plans to pilot the Pooled Gold Interests (PGI) model in London from early 2026.

This is a mechanism that allows investors to own gold in fractional form and pay in real time, bringing this long-time safe haven asset one step further into the digital age.

This is the latest step in the WGC's multi-year effort to digitize the gold market, with ambitions to modernize the precious metals trading industry worth about $900 billion in London.

However, the success of PGI depends on its ability to overcome resistance from established participants and adapt to legal frameworks that are not uniform across countries.

What is "digital gold"?

Currently, the London gold market operates mainly in two forms: “allocated” gold (which can be roughly called physical gold, allocated into specific bars) and “unallocated” gold (which has higher liquidity but comes with more risks).

PGI is seen as a “third option” for over-the-counter (OTC) gold trading.

Under this model, banks and investors can buy and sell ownership of a portion of physical gold held in separate, jointly owned accounts through a trust structure.

According to the Financial Times, the trial will begin with a number of financial institutions in London from early 2026.

Unlike cryptocurrencies, digital gold is tied to the physical market. Each PGI unit corresponds to a specific amount of gold in storage, and transactions are recorded on the blockchain to ensure transparency.

“We want to standardize the digital trading layer of gold, so that financial products in other markets can also be applied to gold,” said David Tait, CEO of the WGC.

PGI is seen as a form of “digital passport” for gold, inspired by previous models such as gold ETFs or gold stablecoins (like Paxos Gold), which require 100% physical gold reserves to avoid the risk of “empty” circulation.

Benefits and challenges

For institutional investors, digital gold offers a huge potential. Instead of being just a reserve asset, gold can become a flexible financial instrument. “For banks, gold can be used as collateral, allowing them to earn significant profits,” Mr. Tait said.

According to WGC, PGI combines the advantages of two existing OTC gold models, including the safety of physical gold, the advantages of divisibility, easy collateralization and quick transfer.

However, there is still much skepticism about this model, especially regarding the unclear legal environment. Authorities are still debating whether digital gold should be considered a security or a derivative, while each country applies it differently, making cross-border implementation difficult.

Unlike stablecoins tied to fiat currencies that have become popular thanks to their liquidity, "digital gold" is still mainly held passively and has not yet become a means of payment or a common unit of account.

The irreplaceable position of physical gold

Despite many barriers, "digital gold" is gradually attracting attention, especially from the younger generation of investors. According to HSBC's 2025 survey, 41% of investors plan to own gold in the next 12 months, of which 28% want to hold "digital gold".

However, analysts say digital gold is unlikely to completely replace physical gold, which plays a core role in central banks’ foreign exchange reserves and cultural demand. Global central banks currently hold about 36,000 tons of gold and have added more than 1,000 tons each year for the past three years, a record high.

At the household level, the appeal of physical gold remains strong. In Asia and the Middle East, jewelry accounts for a large proportion of gold demand. In the UK, gold coins are not only seen as an investment but also for their artistic value and cultural significance.

The future may lie in a hybrid approach, experts say: Physical gold continues to be a hedge against inflation and financial risks, while digital gold offers the advantages of liquidity, low costs and faster payments.

Source: VNA

Source: https://baodongnai.com.vn/kinh-te/202509/thi-truong-vang-toan-cau-chuan-bi-don-cuoc-cach-mang-so-tu-nam-2026-57f01b5/