The Dubai Multidisciplinary Commodity Center (DMCC) has signed a contract to build a precious metals processing plant that will be tracked on blockchain.
According to the press release, the free economic zone (FEZ) created by the Dubai government, DMCC, has entered into an agreement with REIT Development for the construction of a precious metals processing plant, in which the blockchain will be implemented. The 100,000 square foot facility will be the largest of its kind in the Cooperation Council for the Arab States of the Gulf.
The enterprise will deploy a complex of technological processes for deep purification and storage of gold, silver, rhodium, palladium and platinum. These precious metals will also act as collateral for the stablecoins GoldCoin, SilverCoin, RhodiumCoin, PalladiumCoin and PlatinumCoin. The stablecoins will be issued on Ethereum and pegged to the current value of one gram of the corresponding precious metal.
The precious metals backed stablecoins will be available for trading on the DMCC gold exchange platform. Construction work at the facility is scheduled to be completed by the end of 2022. According to Mike De Vries, COO of REIT Development, blockchain will change the precious metals industry:
“Blockchain can provide more transparent and accurate tracking of precious metals, ensuring that there is no dirty gold in circulation and illegal trade […] We believe that by 2025 all precious metals processing and storage facilities will operate on the blockchain. ”
As a reminder, the Dubai Economic Development Department (DED) and the Dubai International Financial Center (DIFC) recently announced that they are ready to implement a blockchain-based data identification platform throughout the UAE.
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