Dubai free zone inks deal for region’s largest precious metals refinery

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Dubai Multi Commodities Centre says refinery and storage facility will be the first in the GCC to be enabled by blockchain

Dubai Multi Commodities Centre (DMCC) has announced the signing of a sale and purchase agreement with REIT Development to establish the largest precious metals refinery and storage facility in the Gulf region.

The facilities will also be the first to be completely enabled by blockchain in the GCC, DMCC said in a statement.

As part of the agreement, REIT Development has acquired industrial land located in DMCC’s Jumeirah Lakes Towers business district, it added.

The facility will refine and store precious metals including gold, silver, platinum, palladium and rhodium, which will be tokenised on goldexchange.com.

Gold Exchange DMCC, a secured trading platform, will provide access to financial assets in the form of stablecoins namely GoldCoin, SilverCoin, PlatinumCoin, PalladiumCoin and RhodiumCoin. Each Ethereum-based token will represent the current value of one gram of each metal and can be traded on the exchange.

The tokens will be physically backed by the precious metals at DMCC’s secure storage facility, meaning they can be traded with confidence.

Ahmed Bin Sulayem, executive chairman and CEO, DMCC, said: “The gold and precious metals industry is at a tipping point, but without a doubt there are boundless opportunities that lie beneath the uncertainty of a post pandemic world.

“Signing this agreement with REIT Development underscores the crucial role that DMCC plays in tapping the UAE and the emirate on the world map as a leader in the precious metals industry through the deployment of cutting-edge technology such as blockchain. The gold and precious metals industry is expected to witness significant growth in the coming period and through similar agreements, we can advance the industry as a whole.”

REIT Development, an organisation specialised in precious metals and blockchain technologies, will complete the facilities in the last quarter of 2022.

Mike De Vries, chief operation officer, REIT Development, said: “Blockchain technology can enable more transparent and accurate tracking of precious metals, ensuring there is no ‘dirty gold’ in circulation and illicit trades.

“Our 100,000 sq ft precious metals refinery and storage will create a decentralised immutable record of all transactions, making it possible to track all precious metals that are refined in our refinery and eventually sold internationally to over 150 countries. Customers who buy our products or use our storage can verify all the information in the blockchain. We believe that by 2025 every precious metals refinery and storage facility will be in the blockchain, let us lead the way.”

In February, Ahmed Bin Sulayem joined the advisory board of the Swiss Government-supported blockchain investment company CV VC following an earlier agreement between DMCC and CV VC and CV Labs.This partnership will bring a leading blockchain and cryptographic technologies ecosystem to Dubai.

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