5 November 2024, Tue |
9:35 AM
By tokenizing the precious metal backed by actual gold bars recorded on DMCC Tradeflow, Dubai Multi Commodities Centre (DMCC) and Comtech Gold plan to digitise the trading of gold.
DMCC Tradeflow is an online platform for registering the ownership of commodities stored in UAE facilities.
Comtech Gold Tokens (CGO) will be made on the XinFin Protocol (XDC) blockchain network which will be based on the deposit of physical gold bars located in vaults that are DMCC-approved.
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC said “Recent market events have highlighted the need for greater transparency and crypto tokens backed by underlying, real-world assets. Our partnership with Comtech Gold to enable the trade of tokenised gold bullion-backed by DMCC Tradeflow warrants addresses this need head-on. 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.”
Each gold bar will be backed by a Tradeflow warrant, combining the improved trading accessibility of a tokenised asset with the added security, transparency, and real-asset allocation offered by the Tradeflow warrant.
Traders and Investors will be able to buy as little as one gram of gold as each token represent that much and democratises the asset by making it more available. These tokens are protected under Shariah compliant and are wholly backed by physical gold in the form of 1kg gold bars of 999.9 purity from renowned brands worldwide. Each bar will have a distinct ID number and a certificate directly from the refiners, in accordance with international best practices for transparency in the precious metals industry.
Navin D’Souza, Chief Executive Officer at ComTech Gold said “A partnership with DMCC is an exciting moment for us as we continue to grow with 122 kgs of gold already tokenised. Tradeflow warrants add the security, control, and transparency to the gold tokens necessary to build investor trust and confidence. This, along with the Shariah certification, makes Comtech Gold Tokens (CGO) an ideal and robust product developed on blockchain technology for regional and international investors.”
