Warehouse warrants open more established financing routes for metal, while the London Metal Exchange examines digital collateral for Hong Kong stock in storage that lacks them.
The review remains preliminary. The focus is metal held in Hong Kong storage for which no warehouse warrant has been issued. Lenders could accept a digital version of the stock as security when providing loans or other financing.
Other metal stock can use more established financing arrangements when it has a warrant. The LME review covers inventory outside those routes, people familiar with the matter said. They said the proposal will be discussed at a private industry roundtable in early November.
