RMGs are backed by gold in The Royal Mint vault.
An Open Source Blockchain
Ro adds that one of the key aspects of making this distributed ledger technology as effective as possible is to release it as open source code ahead of its launch. Blockchain security company BitGo has been working with CME Group to develop the architecture, rules and parameters of the blockchain. Developers, businesses and researchers can now access, evaluate and test the code. See the RMG open source code“We are open sourcing elements of it but we don’t want to give the illusion that this is an open network. It’s not initially,” Ro says.
“It’s a permissioned private network, and we’re going to be allowing for some of the source code – which is based on Bitcoin anyway and which is already open source – to be enhanced and modified.”
She says that this would work towards obviating some of the challenges that had been part of the user experience with other digital asset platforms.
“A brilliant view into transactions”
Igor Telyatnikov, President & COO of AlphaPoint, the blockchain technology company CME Group has partnered with to provide the RMG trading platform, says that it had been working alongside BitGo, the developer of the blockchain code, to develop the secure platform.““This trading platform will provide a high performance and secure venue to buy and sell RMGs. We are excited by the response so far and welcome new financial institutions to engage for an early look, says Telyatnikov.
The CME platform will be the first institutional trading platform for digital gold.
The CME electronic platform for RMG, powered by AlphaPoint, is currently in live testing with institutional traders.
“There is a higher level of traceability and audit that comes with blockchain technology because participants are provided with a permanent immutable record of ownership and chain of ownership and custody,” Telyatnikov says.
“It provides a brilliant view into transactions, which often is obfuscated and opaque in traditional markets.”
How RMG Works
Mike Belshe, CEO of BitGo, ,says the multi-signature Bitcoin wallet that his company pioneered would be at the core of the security technology for RMG.
All crypto-based digital assets, RMG included, are based on public key infrastructure, which allows a host of users on the network to authorize and verify transactions. Multi-signature, Belshe explains, takes this form of authorization one step further with an additional private key being held by a trusted party such as a bank or a lawyer.
“When you want to make a transaction, you sign with your own key and then you hand it to the other guy on a completely different system and get them to sign it too.