DMCC and REIT ink deal to develop GCC’s largest precious metals refinery and storage facility
Facility will refine and store several precious metals including gold, silver, platinum, palladium and rhodium
A sale and purchase agreement has been signed between DMCC and REIT Development that will see what is billed as the GCC’s largest precious metals refinery and storage facility take shape in Dubai. As part of the agreement, REIT Development acquired industrial land located in DMCC’s Jumeirah Lakes Towers (JLT) business district. The project is expected to be completed in the last quarter of 2022.
According to a statement, the facility will be the first to be completely enabled by blockchain in the GCC. It will refine and store precious metals including gold, silver, platinum, palladium and rhodium, which will be tokenised on goldexchange.com.
Gold Exchange DMCC is said to be a secured trading platform and 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, the statement explained.
“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. Signing this agreement with REIT Development underscores the crucial role that DMCC plays in tapping the UAE and the emirate on the world map as a leader in the precious metals industry through the deployment of cutting-edge technology such as blockchain. 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,” said DMCC executive chairman and CEO Ahmed Bin Sulayem.
As part of the ongoing commitment to provide robust infrastructure and innovative platforms to individual traders and stakeholders operating in the gold and precious metals industry, this new facility will strengthen DMCC’s position as a global hub for precious metals and a leader in technological advancements, the statement added.
Mike De Vries, COO at REIT Development noted, “Blockchain technology can enable more transparent and accurate tracking of precious metals, ensuring there is no ‘dirty gold’ in circulation and illicit trades. Our 100,000sqft precious metals refinery and storage will create a decentralised immutable record of all transactions, making it possible to track all precious metals that are refined in our refinery and eventually sold internationally to over 150 countries. Customers who buy our products or use our storage can verify all the information in the blockchain. We believe that by 2025 every precious metal refinery and storage facility will be in the blockchain, let us lead the way.”
In February 2021, Ahmed Bin Sulayem joined the advisory board of the Swiss Government-supported blockchain investment company CV VC following an earlier agreement between DMCC and CV VC and CV Labs. This partnership will bring a leading blockchain and cryptographic technologies ecosystem to Dubai. In 2020, DMCC also signed an agreement with Innoway, a China Government-backed incubator pioneering science, tech and education ecosystems to usher in a new wave of innovation to the UAE, the statement concluded.