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CUSIP Global Services (CGS) today announced a collaboration with Delaware Depository®, one of the nation’s leading providers of precious metals custody services, to create the first-ever CUSIP identifiers for physical precious metals. The unique security identifiers, which will be assigned by CGS to the Delaware Depository’s fungible products, will be used to help standardize the process of trading and tracking precious metals within investor portfolios.
Built on the standard 9-digit CUSIP taxonomy that is ubiquitous in equity and fixed-income markets, the identifiers will initially be assigned to 93 different precious metals product types housed by Delaware Depository. The standardized CUSIP IDs will complement the proprietary, internal product codes Delaware Depository had been using previously to track and manage their clients’ assets.
“The introduction of the CUSIP ID into the precious metals market represents an enormous step forward in the pursuit of a more modern, efficient, and transparent marketplace,” said Jon Potts, Managing Director, Delaware Depository. “We see this critical first step as an exciting opportunity to take a leadership role in the precious metals industry and look forward to further collaboration with CGS to bring their rich experience in identifier standards to bear for the precious metals market.”
While the collaboration initially covers fungible precious metals, CGS plans to expand its precious metals offerings to cover non-fungible products as well, including individual gold bars with unique serial numbers from accredited refiners.
“Though it is arguably one of the world’s oldest asset classes, gold is one of the last to receive CUSIP identification. As markets and trading and portfolio management mechanisms become increasingly electronic, the need for a universal standard is growing quickly,” said Matthew Bastian, Director, Market, Business and Product Development, CUSIP Global Services. “We look forward to the opportunity to work with forward-thinking partners like Delaware Depository to continue to expand our offerings in this space.”
For more information about CGS’ work in the precious metals market, please click here
