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Omnichannel jewellery retailer BlueStone has partnered with digital gold platform SafeGold to launch a gold-monetisation initiative that converts offline household gold holdings into yield-bearing digital assets.

Under this new service, consumers deposit physical jewellery or coins at BlueStone retail stores to be assayed, melted, and credited as 24K digital gold on SafeGold’s platform.

Depositors can then lease these digital holdings to vetted jewellers as working capital, earning an annual yield of roughly 4% denominated directly in gold grams rather than Indian rupees. 

The product aims to bring an estimated 30,000 tonnes of unmonetised gold held in domestic households and bank lockers back into the manufacturing ecosystem. In doing so, it would not only bring gold monetisation into the mainstream but also supply domestic jewellers with working capital and reduce India’s reliance on gold imports. 

“We are sitting on one of the largest reserves of idle household gold in the world, yet most of it earns nothing for its owners. Converting physical gold to digital gold allows customers to grow their gold holdings not just in value, but also in grams,” SafeGold’s founder Gaurav Mathur said. 

The rise of UPI and instant digital payments, as well as rising prices of the yellow metal, have led to an increase in the popularity of digital gold, which can be bought in small denominations without worrying about storage. 

However, the digital gold sector has faced regulatory complexities in the past. 

Notably, capital markets regulator SEBI issued an advisory last year, cautioning that digital gold products are neither recognised as securities nor regulated as commodity derivatives. 

That said, industry leaders aimed to bring transparency, consumer protection, and standardisation to the space by launching a self-regulatory organisation (SRO) called Digital Precious Metals Assurance Council of India (DPMACI) just a few months ago. 

Notably, SafeGold is a member of the same. 

Meanwhile, BlueStone reported a consolidated PAT of ₹5.9 Cr in Q1 FY27, retaining its profitability, albeit its bottom line declined by 81% on a QoQ basis. Its operating revenue surged 50% YoY and 8% QoQ to ₹736.8 Cr. 

The post BlueStone, SafeGold Partner To Convert Household Gold Into Digital Gold appeared first on Inc42 Media.