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

The Dubai Multi Commodities Centre (DMCC) has introduced a brand new partnership with the agency Comtech Gold in an effort 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 one in every of many Free Zones within the United Arab Emirates (UAE) just like the Worldwide 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) will probably be minted utilizing the Xinfin Protocol (XDC) blockchain community. In accordance with 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.”

Every CGO token will characterize Tradeflow-registered gold bars and so they include an connected Tradeflow warrant. Tradeflow is a web based UAE commodities platform that was launched in 2012. The CGO Tradeflow itemizing and warrant provides “further safety, transparency, and real-asset allocation, the DMCC announcement particulars.

Every CGO token represents one gram of .999 nice gold that’s “Shariah compliant and fully backed by physical gold in the form.” Bodily bars which were 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 belongings 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 a press release. “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. As an example, 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 challenge has a market cap of round $420 million on Nov. 23, 2022.

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

Tags on this story

Ahmed Bin Sulayem, Blockchain, CGO, CGO Tokens, commtech gold token (CGO), DMCC CEO, Dubai, Dubai Free Zone, Free Zone, Gold Tokens, KGLD, one gram, one gram of gold, PAXG, Paxos, Perth Mint, Tether, Tokenized Gold, Tradeflow, Tradeflow warrant, UAE, UAE commodities, XAUT

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a monetary tech journalist residing in Florida. Redman has been an energetic member of the cryptocurrency group since 2011. He has a ardour for Bitcoin, open-source code, and decentralized purposes. Since September 2015, Redman has written greater than 6,000 articles for Bitcoin.com News in regards to the disruptive protocols rising immediately.

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