Dubai’s DMCC has partnered with the Virtual Assets Regulatory Authority (VARA) to develop infrastructure for blockchain-based tokenisation of commodities. The collaboration aims to integrate physical assets like gold and diamonds into digital financial systems, strengthening Dubai’s position as a global hub for digital trade.
Dubai Multi Commodities Centre (DMCC), the emirate’s leading international business district, has formed a strategic partnership with Dubai Virtual Assets Regulatory Authority (VARA) to accelerate the development of advanced infrastructure for tokenised commodities.
Announced on October 8, the collaboration marks a significant milestone in Dubai’s ongoing efforts to bridge traditional physical commodities markets with blockchain technology, creating new opportunities for global trade and investment.
The partnership combines DMCC’s extensive commodities expertise and network of 26,000 member companies with VARA’s specialized regulatory framework for digital assets. Together, they will establish secure, transparent systems for tokenising and trading high-value commodities on blockchain platforms.
Pilot Projects and Research Initiatives
Under the agreement, DMCC and VARA will launch pilot projects focused specifically on tokenising gold, diamonds, and other precious commodities. These initiatives will assess technical requirements, regulatory needs, and market viability while maintaining robust investor protections.
The collaboration will also feature educational components, including joint workshops and awareness programmes to deepen understanding of tokenisation benefits, risks, and regulatory considerations among institutions and the public.
“Partnering with VARA is a pivotal step in the evolution of Dubai’s digital-asset landscape. By combining VARA’s world-class regulatory oversight with DMCC’s 26,000-member community and unmatched expertise in commodities, blockchain and Web3, we are creating a secure, scalable framework to tokenise assets such as gold, diamonds and other high-value commodities,” said Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC.
The initiative builds on DMCC’s existing digital commodities work, including gold-backed digital assets offered through its Tradeflow platform. With more than 1,500 companies in the gold and precious metals sector and over 700 Web3 firms in its Crypto Centre, DMCC brings substantial expertise to the partnership.
Regulatory Approach and Market Impact
Matthew White, CEO of VARA, emphasized the significance of the partnership for global markets: “Dubai has long been where global trade meets global innovation and tokenisation is the next chapter in that story. By working with DMCC, we are bringing together deep commodities expertise with regulatory foresight to create a framework that can turn tokenised assets from concept into trusted market infrastructure.”
The agreement also includes provisions for data sharing, economic impact reporting, and industry benchmarking to inform VARA’s policy development, ensuring a balanced approach that supports innovation while maintaining market integrity.
Growing Digital Ecosystem
DMCC’s Crypto Centre has recorded 38 percent year-on-year growth in registered crypto firms, reinforcing its position as the region’s leading Web3 hub. The Centre currently hosts nearly 26,000 companies and contributes approximately 15 percent of Dubai’s total foreign direct investment and 7 percent of its GDP.
This partnership represents another step in Dubai’s strategic vision to become a global leader in both traditional commodities trading and emerging digital asset markets, creating a blueprint for how physical and digital value can converge in regulated, accessible markets.
