The Hong Kong Gold and Silver Exchange has officially transformed into the "Hong Kong Gold Exchange", and has prominently launched the digital gold GoldZip, which has been compliant listed on the local cryptocurrency trading platform. The 'digital gold token' will compete with Bitcoin on the same stage, and 2025 will be truly exciting.
Source:BLOCK TEMPO
Author: Arthur Wang
The Hong Kong gold market is undergoing a historic transformation! Starting from 2025, the Hong Kong Gold and Silver Exchange will be transformed into the "Hong Kong Gold Exchange". Hong Kong is a financial hub in Asia, and it aims to change the history of precious metal trading that has lasted for 114 years, reform the new gold exchange, and build an international-level gold trading center based on this.
The Gold and Silver Exchange is transformed into the Gold Exchange, combining history and innovation
The Hong Kong Gold and Silver Exchange, established in 1910, has always been the core of local gold and precious metal trading. With the growth of global gold market demand, in December 2024, the exchange announced that it would be transformed into the "Hong Kong Gold Exchange" and officially operate in 2025. This exchange will focus on spot trading of gold, silver and other precious metals, while promoting innovative products, such as the digital gold GoldZip, and compliant listing on local cryptocurrency trading platforms.
Digital gold GoldZip, through digital certification, realizes the popularization of gold investment, with the investment unit miniaturized to grams (g), calculated at the current gold price, each lot is only a few hundred Hong Kong dollars, and can be traded and cashed out 24 hours a day. In theory, if the exchange opens up withdrawal to personal wallets, it will be able to realize decentralized asset management.
The chairman of the exchange, Zhang Dexi, stated that this transformation is to align with the Hong Kong government's goal of "upgrading Hong Kong to an international gold trading center", and plans to promote policy implementation through the establishment of a gold market development working group, to enhance Hong Kong's competitiveness in the international market in the short term.
The government supports the development of the gold industry, and initiates infrastructure and interconnection
The construction of an international-level gold warehouse mentioned in the Policy Address is an important part of this plan. Currently, Hong Kong's gold vaults are located in the airport restricted area, but due to geographical location and operational convenience, they are unable to fully meet market demand. Therefore, the government is considering setting up a new gold vault at the Lok Ma Chau border crossing in northern Hong Kong, in order to strengthen the "interconnection" between Hong Kong and China's gold markets.
The industry also has high expectations, hoping that the new warehouse can more effectively serve China's demand and attract more international capital. In addition, the concept of "Gold Connect" has also emerged, and this mechanism may refer to the operation model of Stock Connect and Bond Connect, further deepening the connection between the Chinese and Hong Kong markets.
Geopolitics and central bank gold purchases drive gold demand
In recent years, geopolitical turmoil and global economic uncertainty have once again made gold an asset for hedging. Data shows that the global central banks' gold purchase demand has increased from 11% in 2021 to 23% in 2023. As the world's largest asset, gold's liquidity is second only to the S&P 500 index.
Zhang Dexi mentioned that although the gold price has been relatively conservative recently, with the continued fermentation of geopolitical issues, he believes the gold price will maintain a strong momentum, and is expected to stabilize above $2,500 per ounce, and even challenge $2,850.
HSBC and Tether have previously launched gold tokens
In the past, HSBC and Tether have both launched gold tokens, such as the HSBC Gold Token and Tether Gold (XAUt), but they were limited by commercial applications and lack of popularity. However, the gold market reform and digital gold token driven by the Hong Kong authorities this time means that the tokenization of gold will further combine policy support, and is expected to bring a new atmosphere to the gold market, and greatly increase the participation and convenience of investors, let's continue to pay attention.
