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

The Hong Kong Gold Exchange (HKGX) and technology firm TGX Technology have formed a joint venture to develop a "secure, stable and internationally competitive" gold trading and clearing platform. This initiative aims to bolster Hong Kong's position as a gold trading hub. The platform, HKGXTS, will leverage technology from Alibaba Cloud, a partner of TGX Technology, and Hundsun Technologies.

HKGXTS chairman Haywood Cheung noted that this step would significantly enhance Hong Kong's gold trading infrastructure. The system is set to commence pilot operations in the first quarter of 2027. HKGXTS, led by CEO Sun Ho, intends to integrate HKGX's existing products and services into a unified system, with plans to expand digital offerings, such as gold tokenisation, in subsequent phases.

The platform will initially focus on physical gold delivery, aiming to establish a robust multi-tier bullion trading and investment platform. HKGXTS plans to further enhance trading efficiency, cut transaction and settlement costs, and support multicurrency pricing and settlement through its financial technology. The joint venture will also expand into areas like international market access, digital gold real-world assets, and cross-market expansion.

Hong Kong is actively working towards becoming a regional gold trading hub by increasing bullion-storage capacity, launching a trial of a central clearing and settlement system, and attracting regional central banks to hold reserves in the city.