Dubai Multi Commodities Centre (DMCC) announced yesterday a strategic partnership with the Dubai Virtual Assets Regulatory Authority (VARA) to develop an integrated global infrastructure for tokenized commodities.

The centre stated in a press release that this agreement marks a pivotal step in the development of Dubai’s digital asset ecosystem, positioning the emirate at the forefront of global efforts to integrate physical commodities into blockchain-based financial systems, opening new horizons for the financial sector.

Amid the growing momentum of blockchain and tokenization technologies in international markets, this partnership combines DMCC’s expertise in the commodities sector and its extensive member network with the crucial regulatory role of VARA.

Through this collaboration, both parties aim to establish a secure, transparent, and scalable framework for commodity tokenization, enhancing access to global markets and supporting the integration of tokenized assets into the traditional financial system in the long term.

The cooperation will focus on several key areas, launching pilot projects to evaluate mechanisms for safely tokenizing and trading commodities such as gold and diamonds via blockchain infrastructure. These pilot projects will assess technical and regulatory requirements, market feasibility, and investor protection mechanisms.

Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, said: “The partnership with VARA represents a pivotal step in developing Dubai’s digital asset sector. By combining the regulatory oversight provided by VARA and DMCC’s expertise, which includes 26,000 companies in commodities, blockchain, and Web3, we are creating a secure and scalable framework for the digital transformation of assets like gold, diamonds, and other high-value commodities.”

Meanwhile, Matthew White, CEO of VARA, stated: “Through our collaboration with DMCC, we are combining expertise in the commodities sector with forward-looking regulatory vision to create a framework capable of transforming tokenized assets from a mere concept into a trusted market infrastructure.”