Dubai Multi Commodities Centre – a free trade zone formed by the Dubai authority – has reportedly entered a sale and purchase deal with REIT Development, to begin construction for a 100,000 square foot precious metals refinery.

Specifically, this blockchain-powered precious metal refinery and storage facility will reportedly be among the biggest across the Gulf Cooperation Council. 

The new facility – situated in the high brow Jumeirah Lake Towers area – will primarily focus on refining and holding a wide range of precious metals, nominally gold, silver, rhodium, palladium and platinum among others.

These precious metals will reportedly also be the backing unit for asset-collateralized stablecoins, such as GoldCoin, SilverCoin, RhodiumCoin, PalladiumCoin and PlatinumCoin, and many more. 

Ethereum will be the operating network for stablecoins, and will be pegged to the existing value of one gram of the corresponding precious metal.

The precious metals-backed stablecoins will reportedly be officially placed for public trading across the DMCC’s gold exchange platform.

The building process of the facility is reportedly slated to be finalized before 2022 concludes, where DMCC revealed that the complex will additionally reinforce its current standing throughout the international precious metal markets.

“Blockchain technology can enable more transparent and accurate tracking of precious metals, ensuring there is no ‘dirty gold’ in circulation and illicit trades […] We believe that by 2025 every precious metals refinery and storage facility will be in the blockchain.” Mike De Vries, chief operating officer of REIT Development, reportedly shared his view on the potential disruption blockchain can bring to the precious metals sector.