When blockchain technology is set to be the next big thing to steer finance and banking, how could the bullion trading be left behind. In view of the growing acceptance of blockchain, the National Stock Exchange is geared to roll out its bullion trading platform — NSE-Shine.
As the name suggests, it is likely to be a shining example of technology-driven bullion trading in India.
Let us understand what this means and how this was developed.
What is NSE-Shine?
The NSE-Shine, a blockchain driven platform, is set to offer a data framework for bullion bar integrity to settle gold derivatives contracts.
Indian Institute of Management (IIM) Ahmedabad’s India Gold Policy Centre (IGPC) collaborated with NSE to develop a bullion trading platform driven by the latest technology of blockchain. For technological support, a Bengaluru-based start-up Chainflux played an instrumental role.
When the platform is up and running, most likely in November, the NSE-approved refiners will be able to use the digital platform to update the record of bullion they produce.
This is how a repository will be created for the bullion bars produced by the refiners, according to the NSE Refiner Standards (NRS).
These initiatives of blockchain technology and deploying the NRS are aimed to set up digital, fool-proof code of practice for bullion integrity.
At the time of launch of this platform, the executive director of SEBI VS Sundaresan expressed faith in blockchain technology, which — he said — can help bolster trust in the precious metal commodities business.
So, we can highlight that blockchain is a deep technology with a series of applications rolled into it. As it evolves, there will be several more layers of its usefulness that would be uncovered. As NSE-Shine is rolled out, a step has been taken in this direction.