Dubai Multi Commodities Center Will Issue Gold Backed Tokens Using Xinfin Blockchain Protocol – Blockchain Bitcoin News

The Dubai Multi Commodities Center (DMCC) has announced a new partnership with the firm Comtech Gold to digitize gold trading. DMCC said the tokenized precious metals are backed by DMCC Tradeflow-registered bullion, and each tokenized bullion “will be backed by a Tradeflow guarantee.”

DMCC to Digitize Tradeflow Registered Gold Bullion via Xinfin Blockchain

The Dubai Multi Commodities Center (DMCC) is a UAE free zone established in 2002, and it is considered the region’s authority when it comes to commodity trade and enterprise. DMCC is one of many free zones in the United Arab Emirates (UAE) such as the International Free Zone Authority (IFZA) and the Jebel Ali Free Zone Authority (JAFZA). On November 21, 2022, DMCC announced a partnership with Comtech Gold as the UAE Free Zone plans to symbolize gold settlements.

The announcement states that a crypto coin called the commtech gold token (CGO) will be minted using the Xinfin Protocol (XDC) blockchain network. According to the site, 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 will come with an attached Tradeflow guarantee. Tradeflow is an online UAE commodity platform launched in 2012. The CGO Tradeflow listing and warrant add “additional security, transparency and real-asset allocation,” DMCC announcement details.

Each CGO token represents one gram of 0.999 fine gold that is “Shariah Compliant and fully backed by physical gold in its form”. Physical bars that have been tokenized will “have unique ID numbers and certificates directly from the refiners.” Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, believes there is a need for real-world tokenized assets like CGO.

“Recent market events have highlighted the need for greater transparency and crypto-tokens backed by underlying, real-world values,” the DMCC CEO said in a statement. “Our partnership with Comtech Gold to enable tokenized gold bullion trading, backed by DMCC Tradeflow guarantees, addresses this need directly.”

The Commtech gold token (CGO) joins a handful of gold-backed tokens already in existence. For example, Paxos has issued tokenized gold ounces and the company’s PAXG tokens have a market cap of around $476 million. Tether issues gold-backed tokens called XAUT and the XAUT project has a market cap of around $420 million on November 23, 2022.

The Perth Mint also issues gold tokens and the PMGT market has a total market capitalization of around $2.16 million. 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.

What do you think about DMCC and Comtech Gold launching one gram gold backed tokens called CGO? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.