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

The Dubai Multi Commodities Centre (DMCC) has announced a caller concern with the steadfast Comtech Gold successful bid to digitize golden trading. The DMCC said the tokenized precious metals are backed by DMCC Tradeflow-registered golden bars, and each tokenized golden barroom “will beryllium backed by a Tradeflow warrant.”

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

Dubai Multi Commodities Centre (DMCC) is simply a UAE Free Zone established successful 2002, and it’s considered the region’s authorization erstwhile it comes to commodities commercialized and enterprise. DMCC is 1 of galore Free Zones successful the United Arab Emirates (UAE) similar the International Free Zone Authority (IFZA) and Jebel Ali Free Zone Authority (JAFZA). On Nov. 21, 2022, the DMCC announced a concern with Comtech Gold arsenic the UAE Free Zone plans to tokenize golden settlement.

The announcement says that a crypto coin called the commtech golden token (CGO) volition beryllium minted utilizing the Xinfin Protocol (XDC) blockchain network. According to the website, Xinfin is called an “enterprise-ready hybrid blockchain” that combines “the powerfulness of nationalist [and] backstage blockchains with interoperable astute contracts.”

Each CGO token volition correspond Tradeflow-registered golden bars and they travel with an attached Tradeflow warrant. Tradeflow is an online UAE commodities level that was launched successful 2012. The CGO Tradeflow listing and warrant adds “additional security, transparency, and real-asset allocation, the DMCC announcement details.

Each CGO token represents 1 gram of .999 good golden that’s “Shariah compliant and afloat backed by carnal golden successful the form.” Physical bars that person been tokenized volition “feature unsocial ID numbers and certificates nonstop from the refiners.” Ahmed Bin Sulayem, the enforcement president and CEO astatine DMCC, believes there’s a request for tokenized real-world assets similar CGO.

“Recent marketplace events person highlighted the request for greater transparency and crypto tokens backed by underlying, real-world assets,” the DMCC CEO said successful a statement. “Our concern with Comtech Gold to alteration the commercialized of tokenised golden bullion backed by DMCC Tradeflow warrants addresses this request head-on.”

The commtech golden token (CGO) joins a fistful of gold-backed tokens that already exist. For instance, Paxos has issued tokenized golden ounces and the company’s PAXG tokens person a marketplace valuation of astir $476 million. Tether issues gold-backed tokens called XAUT and the XAUT task has a marketplace headdress of astir $420 cardinal connected Nov. 23, 2022.

Perth Mint besides issues gold tokens and the PMGT marketplace has an wide marketplace headdress of astir $2.16 million. The precious metals steadfast and media company, Kitco has an ERC20 gold-backed token called kitco golden (KGLD), but the task hasn’t seen overmuch fanfare since it was announced.

What bash you deliberation astir the DMCC and Comtech Gold launching one-gram gold-backed tokens called CGO? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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