Dubai Multi Commodities Centre to Issue Gold Backed Tokens Using the Xinfin Blockchain Protocol
The Dubai Multi Commodities Centre (DMCC) has announced a new partnership with the firm Comtech Gold in order to digitize gold trading. The DMCC said the tokenized precious metals are backed by DMCC Tradeflow-registered gold bars, and each tokenized gold bar “will be backed by a Tradeflow warrant.” DMCC to Digitize Tradeflow-Registered Gold Bars via the Xinfin Blockchain
Dubai Multi Commodities Centre (DMCC) is a UAE Free Zone established in 2002, and it’s considered the region’s authority when it comes to commodities trade and enterprise. DMCC is one of many Free Zones in the United Arab Emirates (UAE) like the International Free Zone Authority (IFZA) and Jebel Ali Free Zone Authority (JAFZA). On Nov. 21, 2022, the DMCC announced a partnership with Comtech Gold as the UAE Free Zone plans to tokenize gold settlement.
The announcement says that a crypto coin called the commtech gold token (CGO) will be minted using the Xinfin Protocol (XDC) blockchain network. According to the website, Xinfin is called an “enterprise-ready hybrid blockchain” that combines “the power of public [and] private blockchains with interoperable smart contracts.”
Each CGO token will represent Tradeflow-registered gold bars and they come with an attached Tradeflow warrant. Tradeflow is an online UAE commodities platform that was launched in 2012. The CGO Tradeflow listing and warrant adds “additional security, transparency, and real-asset allocation, the DMCC announcement details.
Each CGO token represents one gram of .999 fine gold that’s “Shariah compliant and fully backed by physical gold in the form.” Physical bars that have been tokenized will “feature unique ID numbers and certificates direct from the refiners.” Ahmed Bin Sulayem, the executive chairman and CEO at DMCC, believes there’s a need for tokenized real-world assets like CGO.
“Recent market events have highlighted the need for greater transparency and crypto tokens backed by underlying, real-world assets,” the DMCC CEO said in a statement. “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 already exist. For instance, Paxos has issued tokenized gold ounces and the company’s PAXG tokens have a market valuation of around $476 million. Tether issues gold-backed tokens called XAUT and the XAUT project has a market cap of around $420 million on Nov. 23, 2022.
Perth Mint also issues gold tokens and the PMGT market has an overall market cap of around $2.16 million. The precious metals firm and media company, Kitco has an ERC20 gold-backed token called kitco gold (KGLD), but the project hasn’t seen much fanfare since it was announced. Tags in 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
What do you think about the DMCC and Comtech Gold launching one-gram gold-backed tokens called CGO? Let us know what you think about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Topps Sells out Crypto-Themed Garbage Pail Kids "Non-Flushable Token" Cards BLOCKCHAIN | 5 days ago Sony Files Patent to Use NFT Tech for Keeping Track of in-Game Digital Assets; Introduces Moments Market BLOCKCHAIN | 6 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleMEXC Global Vice President Andrew Weiner Explains the Appeal of Futures Trading Next articleKraken’s Jesse Powell Takes Aim at Newly Launched Proof-of-Reserve Lists, POR Audit ‘Requires Cryptographic Proof’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards
Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether