Takasbank, i.e., Turkey’s Istanbul Clearing, Settlement, and Custody, have declared the launch of a physical gold-backed transfer system based on blockchain technology.

Dubbed BIGA Digital Gold, the system enables peer-to-peer transfer of digitizable gold, a physical commodity, through blockchain technology.

According to the official website of the project, it intends to “establish an infrastructure that will provide for the accomplishment of the transfer of dematerialized gold at certain standards with their physical equivalents kept in safe custody utilizing blockchain technology.”

The system was first declared in September this year after the completion of trials of the project, which initiated last year.

Conversing to a local Turkish news outlet AA, an official from Takasbank stated, “This platform differentiates itself from many related projects in the world by enabling the use of blockchain technology to transfer digital assets based on physical commodities, not having any value of its own, and assuring full compliance with present regulations.”

The project also added significant partners in the region, which involve state lenders Ziraat and Vakif, private and state participation banks Albaraka Turk, Kuveyt Turk, private lender Garanti BBVA, and Ziraat Participation.

The announcement also revealed that the gold balances would be movable 24/7 among the participating financial institutions once an upgrade of the system is rolled out.

As per the bank, the blockchain-based system will fundamentally target three types of transactions – repayment, issuance, and transfers.

“There are also additional features on the blockchain-powered BIGA Platform, including integration with the Gold Transfer System, clearing authorization, as well as monitoring and reporting tools,” the announcement declared.

Gold-backed digital currencies are earning a lot of fame across the globe recently. Last year, stablecoin issuer Paxos extended services with its gold-backed digital currencies to enable holders to redeem physical gold with their digital token.

The scope of digital currencies backed by gold are rising stars in the industry, it seems. For instance, back in May 2019, Leaprate stated that Russia might be looking into gold-backed cryptocurrency, one that might complement the ruble or even replace it.