According to the Financial Times, the world’s largest metal trading market – the London Metal Exchange (LME) is involved with a consortium to track physical metals via blockchain. Sources indicate the LME has joined the group led by Mercuria, a Geneva based energy trading firm and one of the world’s largest independent energy traders.
The LME currently stores physical metals for holders in 500 warehouses in 34 locations worldwide. Named “Forcefield”, the plan to build a blockchain based system to track the trade of metals would increase efficiencies, clarify ownership and enable purchasers to track source.
LME Chief Executive, Matt Chamberlain, said of blockchain, “you know where your metal is, you have proof of your metal” and that the industry coming together to execute such a project would be “a huge win for the metals trading community.”
Forcefield is also notably supported by banks Macquarie and ING.