The Dubai Multi Commodities Centre (DMCC) announced a partnership with Comtech Gold to digitise the trading of gold by tokenising the precious metal backed by physical gold bars registered on DMCC Tradeflow.
DMCC Tradeflow is an online platform for registering the ownership of commodities stored in UAE facilities.
Comtech Gold Tokens (CGO) will be created on a blockchain network based on the deposit of physical gold bars located in DMCC-approved vaults, the commodities hub said in a statement on Monday.
Each gold bar will be backed by a Tradeflow warrant, meaning that the increased ease of trading a tokenised asset is combined with the additional security, transparency and real asset allocation provided by the Tradeflow warrant.
The tokens are Shariah compliant and fully backed by physical gold in the form of 1-kilogram gold bars of 999.9 purity from globally renowned brands. In line with international best practices for transparency in the precious metals sector, each bar will feature unique ID numbers and certificates direct from the refiners.
(Writing by Brinda Darasha; editing by Cleofe Maceda)