News Bites
DMCC launches tokenized gold bullion
(Kitco News) -
Dubai Multi Commodities Centre (DMCC) has announced a partnership with Comtech Gold to digitize the trading of gold by tokenizing the precious metal backed by physical gold bars registered on DMCC Tradeflow.
“Recent market events have highlighted the need for greater transparency and crypto tokens backed by underlying real-world assets,” said Ahmed Bin Sulayem, Chief Executive Officer of DMCC. “Our partnership with Comtech Gold to enable the trade of tokenized gold bullion backed by DMCC Tradeflow warrants addresses this need head-on.”
DMCC was established in 2002 and is one of the fastest growing Free Zones in the United Arab Emirates. DMCC Tradeflow is an online platform for registering the ownership of commodities stored in UAE facilities.
DMCC said that Comtech Gold Tokens (CGO) will be created on the XinFin Protocol (XDC) blockchain network based on the deposit of physical gold bars located in DMCC-approved vaults.
“DMCC firmly believes that blockchain solutions will drive long-term growth in global trade across industries and asset classes, and this latest announcement is another testament to this core belief,” Bin Sulayem said.
Each gold bar will be backed by a Tradeflow warrant, meaning that the increased ease of trading a tokenized asset is combined with the additional security, transparency, and real-asset allocation provided by the Tradeflow warrant.
“A partnership with DMCC is an exciting moment for us as we continue to grow with 122 kgs of gold already tokenized,” said Navin D'Souza, Chief Executive Officer at ComTech Gold. “Tradeflow warrants add the security, control, and transparency to the gold tokens necessary to build investor trust and confidence.”
With each token representing one gram of gold, investors and traders will be able to buy as little as one gram. DMCC said the tokens are Shariah compliant and fully backed by physical gold in the form of 1kg gold bars of 999.9 purity from recognized brands, and each bar will feature unique ID numbers and certificates direct from the refiners.
