DMCC signed a sale and purchase agreement with REIT Development to establish the largest (100,000-sq-ft) precious metals refinery and storage facility across the Gulf Cooperation Council (GCC). It will also be the first refinery to be completely enabled by blockchain in the GCC.
The facility will refine and store precious metals including gold, silver, platinum, palladium and rhodium, which will be tokenised on goldexchange.com. Gold Exchange DMCC, a secured trading platform, will provide access to financial assets in the form of stablecoins namely GoldCoin, SilverCoin, PlatinumCoin, PalladiumCoin and RhodiumCoin.
Each Ethereum-based token will represent the current value of one gram of each metal and can be traded on the exchange. The tokens will be physically backed by the precious metals at DMCC’s secure storage facility, meaning they can be traded with confidence.
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said: “The gold and precious metals industry is at a tipping point, but without a doubt there are boundless opportunities that lie beneath the uncertainty of a post pandemic world. The gold and precious metals industry is expected to witness significant growth in the coming period and through similar agreements, we can advance the industry as a whole.”
The 100,000 sq ft precious metals refinery and storage facility is expected to be completed in the last quarter of 2022.
Mike De Vries, Chief Operation Officer, REIT Development, added: “Blockchain technology can enable more transparent and accurate tracking of precious metals, ensuring there is no ‘dirty gold’ in circulation and illicit trades.”
The facility will create a decentralised immutable record of all transactions, making it possible to track all precious metals that are refined there and eventually sold internationally to over 150 countries, De Vries added. “We believe that by 2025 every precious metals refinery and storage facility will be in the blockchain, let us lead the way.”