- DMCC Tradeflow Mandates Offer Greater Transparency and Security for Gold Bullion-Backed Crypto Tokens
Dubai, United Arab Emirates: DMCC – the world’s flagship free zone and the Government of Dubai’s authority on commodity trading and business – has announced a partnership with Comtech Gold to digitize gold trading by tokenizing the precious metal backed by physical gold bars registered on DMCC Tradeflow.
DMCC Tradeflow is an online platform to register ownership of products stored in UAE facilities.
Comtech Gold Tokens (“CGO”) will be created on the XinFin Protocol (XDC) blockchain network based on the deposit of physical gold bars located in DMCC-approved vaults.
Each gold bar will be backed by a Tradeflow mandate, which means the increased ease of trading a tokenized asset is combined with the security, transparency and additional real asset allocation provided by the Tradeflow mandate.
With each token representing one gram of gold, investors and traders will be able to purchase as little as one gram, democratizing the asset class by making it more accessible. The tokens are Sharia compliant and fully backed by physical gold in the form of 999.9 purity 1kg gold bars from world famous brands. In line with international best practices for transparency in the precious metals industry, each bar will feature unique identification numbers and certificates sourced directly from the refiners.
Ahmed Bin Sulayem, Executive Chairman and Managing Director of DMCC, said, “Recent market events have highlighted the need for greater transparency and for crypto tokens backed by real underlying assets. Our partnership with Comtech Gold to enable trading of tokenized gold bullion backed by DMCC Tradeflow mandates addresses this need head-on. DMCC firmly believes that blockchain solutions will drive the long-term growth of global commerce across all sectors and asset classes, and this latest announcement is yet another testament to that core belief.
Navin D’Souza, Managing Director of ComTech Gold, said, “Partnering with DMCC is an exciting time for us as we continue to grow with 122 kg of gold already tokenized. Tradeflow warrants add the security, control, and transparency to gold tokens needed to build investor confidence. This, together with the Shariah certification, makes Comtech Gold Tokens (CGO) an ideal and robust product developed on blockchain technology for regional and international investors.
This partnership adds to Tradeflow’s list of Sharia-compliant products, given that the tokens are backed by physical assets. Tradeflow recorded over 67,000 Islamic financial transactions in the first half of 2022, reaching a total value of AED 746 billion. This represents the highest six-month volume ever for the platform.
DMCC Tradeflow was launched in 2012 to fill a gap in the regional trade finance market and has seen a substantial year-on-year increase in transactions, driving the expansion of the platform. DMCC Tradeflow now offers a range of online services specifically designed to facilitate collateral financing, jewelry financing and provide Islamic financing solutions.
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Based in Dubai, DMCC is the most interconnected free zone in the world and the main trade and business hub for commodities. Whether developing vibrant neighborhoods with world-class properties like Jumeirah Lakes Towers and the highly anticipated Uptown Dubai, or providing high-performance commercial services, DMCC provides everything its vibrant community needs to live. , work and prosper. Built for trade, DMCC is proud to maintain and grow Dubai’s position as the go-to place for global trade today and in the future. www.dmcc.ae