Dubai Multi Commodities Centre to Issue Gold Backed Tokens Using the Xinfin Blockchain Protocol

The Dubai Multi Commodities Centre (DMCC) has introduced a brand new partnership with the agency Comtech Gold with a view to digitize gold buying and selling. The DMCC stated the tokenized treasured metals are backed by DMCC Tradeflow-registered gold bars, and every tokenized gold bar “will be backed by a Tradeflow warrant.”

DMCC to Digitize Tradeflow-Registered Gold Bars through the Xinfin Blockchain

Dubai Multi Commodities Centre (DMCC) is a UAE Free Zone established in 2002, and it’s thought-about the area’s authority in terms of commodities commerce and enterprise. DMCC is considered one of many Free Zones within the United Arab Emirates (UAE) just like the International Free Zone Authority (IFZA) and Jebel Ali Free Zone Authority (JAFZA). On Nov. 21, 2022, the DMCC introduced a partnership with Comtech Gold because the UAE Free Zone plans to tokenize gold settlement.

The announcement says {that a} crypto coin referred to as the commtech gold token (CGO) can be minted utilizing the Xinfin Protocol (XDC) blockchain community. According to the web site, Xinfin is known as an “enterprise-ready hybrid blockchain” that mixes “the power of public [and] private blockchains with interoperable smart contracts.”

Each CGO token will symbolize Tradeflow-registered gold bars they usually include an hooked up Tradeflow warrant. Tradeflow is a web-based UAE commodities platform that was launched in 2012. The CGO Tradeflow itemizing and warrant provides “extra safety, transparency, and real-asset allocation, the DMCC announcement particulars.

Each CGO token represents one gram of .999 superb gold that’s “Shariah compliant and fully backed by physical gold in the form.” Physical bars which have been tokenized will “feature unique ID numbers and certificates direct from the refiners.” Ahmed Bin Sulayem, the chief chairman and CEO at DMCC, believes there’s a necessity for tokenized real-world property like CGO.

“Recent market events have highlighted the need for greater transparency and crypto tokens backed by underlying, real-world assets,” the DMCC CEO stated in an announcement. “Our partnership with Comtech Gold to enable the trade of tokenised gold bullion backed by DMCC Tradeflow warrants addresses this need head-on.”

The commtech gold token (CGO) joins a handful of gold-backed tokens that exist already. For occasion, Paxos has issued tokenized gold ounces and the corporate’s PAXG tokens have a market valuation of round $476 million. Tether points gold-backed tokens referred to as XAUT and the XAUT undertaking has a market cap of round $420 million on Nov. 23, 2022.

Perth Mint additionally points gold tokens and the PMGT market has an general market cap of round $2.16 million. The treasured metals agency and media firm, Kitco has an ERC20 gold-backed token referred to as kitco gold (KGLD), however the undertaking hasn’t seen a lot fanfare because it was introduced.

What do you consider the DMCC and Comtech Gold launching one-gram gold-backed tokens referred to as CGO? Let us know what you consider this topic within the feedback part beneath.