The world's largest metal-focused futures exchange, the London Metal Exchange (LME), has backed a consortium of metals traders and financial institutions to create a blockchain-based platform in order to track the trade of physical metal, Financial Times reports citing people familiar with the matter.
The London Metal Exchange is also known as the world's biggest financial market in options and futures contracts which are based on precious metals. The exchange has been regulated by Hong Kong Exchanges since 2012 after LME's shareholders agreed to sell the exchange for £1.4 billion ($1.7 billion).
It's expected that the platform would provide "a better picture of the flow of metals around the world."
The LME CEO, Matt Chamberlain pointed out that the metals ecosystem needed "to agree on a tracking and storage system," that would be based on the distributed ledger technology like blockchain.
Last year, the British blockchain fintech startup Circulor announced a partnership with the government of Rwanda to develop a blockchain system for tracking tantalum from the pit-face to the refinery.
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