Hong Kong Gold Exchange taps tech strength in joint venture to power gold settlement

The Hong Kong Gold Exchange (HKGX) and TGX Technology have joined forces to create a new platform called HKGXTS. This platform aims to provide a secure, stable, and internationally competitive gold trading and clearing system. The joint venture will utilize technology partners like Alibaba Cloud, backed by Alibaba, and Hundsun Technologies.

HKGXTS chairman Haywood Cheung, also the chairman of HKGX, emphasized that this step strengthens Hong Kong's gold trading infrastructure. The platform is expected to start pilot operations in the first quarter of 2027. Built around physical gold delivery, HKGXTS plans to offer a multi-tier bullion trading and investment platform.

The first phase will integrate HKGX's existing trading, settlement, and clearing services into a unified system, with future additions including gold tokenisation and extended-hour electronic trading capabilities. The platform will also leverage financial technology to improve trading efficiency, lower transaction and settlement costs, and support multicurrency pricing and settlement.

HKGXTS held its first board meeting to discuss development strategies and plans to expand the platform's reach, including international market access, digital gold real-world assets, and cross-market expansion. Hong Kong is actively working towards becoming a regional gold trading hub, with goals to increase bullion storage capacity and attract central banks to hold reserves in the city.