DMCC tokenises trade in gold
Gold tokens will be backed by physical bullion held by DMCC’s Tradeflow
The Dubai free zone DMCC is tokenising trade in gold and backing it up by physical bullion stored on its Tradeflow platform. This way, the entity expects to bring in more transparency into deal flows involving the metal.
The DMCC Tradeflow is an online platform to register ownership of commodities stored in UAE facilities. Through DMCC’s partnership with Comtech Gold, tokens will be created on the XinFin Protocol (XDC) blockchain network in line with the deposit of physical gold bars located in DMCC-approved vaults.
Each gold bar will be backed by a Tradeflow warrant, meaning ‘increased ease of trading a tokenised asset’ and combined with the ‘additional security and realasset allocation provided by the Tradeflow warrant’.
Sharia-compliant
Each token represents one gram of gold, and investors/ traders will be able from one gram. The tokens are Shariacompliant and backed by physical gold in the form of 1kg gold bars of 999.9 purity from renowned brands. Each bar will feature unique ID numbers and certificates direct from the refiners.
“Recent market events have highlighted the need for greater transparency and crypto tokens backed by underlying, real-world assets,” said Ahmed Bin Sulayem, Executive Chairman and CEO, DMCC. “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, meaning ‘increased ease of trading a tokenised asset’.