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First precious metals refinery enabled by blockchain to be set up in Dubai

DMCC, the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise, has announced the signing of a sale and purchase agreement (SPA) with REIT Development to establish the largest precious metals refinery and storage facility across the GCC and the first to be completely enabled by blockchain in the GCC. As part of the agreement, REIT Development acquired industrial land strategically located in DMCC’s Jumeirah Lakes Towers (JLT) vibrant business district.

First precious metals refinery enabled by blockchain to be set up in Dubai

DMCC has premium plots for sale across JLT, which are attracting significant interest from a diverse range of investors and developers, all in search of a dynamic destination to do business. The facility will refine and store precious metals, including gold, silver, platinum, palladium and rhodium, which will be tokenized on the website.

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 of 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. 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." He added that 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 first-of-its-kind facility by REIT Development – an organization specialized in precious metals and blockchain technologies – will be completed in the last quarter of 2022. Mike De Vries, Chief Operation Officer of REIT Development, said, "Blockchain technology can enable more transparent and accurate tracking of precious metals, ensuring there is no ‘dirty gold’ in circulation and illicit trades. Our 100,000 sq ft precious metals refinery and storage will create a decentralized 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 metals refinery and storage facility will be in the blockchain, let us lead the way."

In February 2021, 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.