HancomWITH Pursues Gold RWA JV in Dubai to Target Middle East Digital Finance Market
TECHWORLD ·
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HancomWITH is moving to establish a joint venture in Dubai, UAE, for a gold real-world asset tokenization (RWA) business.
On the 3rd, HancomWITH said it had signed an agreement to set up the Dubai-based joint venture with ADGT and Cast Holdings.
The joint venture is designed to manage the entire process of sourcing physical gold, storage, reserve verification, on-chain token issuance and redemption.
HancomWITH is moving to establish a joint venture in Dubai, UAE, for a gold real-world asset tokenization (RWA) business, stepping up its push into the Middle East digital finance market. On the 3rd, HancomWITH said it had signed an agreement to set up the Dubai-based joint venture with UAE gold trading company Al Dhafra Al Gharbia Gold Trading (ADGT) and global business development firm Cast Holdings.
The agreement is aimed at launching the business together with ADGT, which has capabilities in gold sourcing and distribution, and Cast Holdings, which has business development expertise. The three companies agreed to divide responsibilities based on each company's core strengths.
The joint venture will have total capital of $800,000. The ownership structure will be 40% for HancomWITH, 40% for ADGT and 20% for Cast Holdings.
The joint venture is designed to manage the entire process of sourcing physical gold, storage, reserve verification, on-chain token issuance and redemption. ADGT will be responsible for sourcing, refining and storing physical gold based on its Tanzania gold mine project and its local distribution network in the UAE, while HancomWITH will handle issuance, redemption systems and operations for converting secured physical gold into on-chain assets.
The joint venture was conceived as a structure in which physical gold supply and token issuance are operated by a single organization. Unlike the existing model, in which the provider of the physical asset and the issuer have been separated, this joint venture unifies sourcing and issuance.
The goal is to increase the linkage between physical gold and on-chain assets. In this process, Cast Holdings will be responsible for business development linked to Korea, China and the UAE, as well as cooperation with local institutions and companies.
The three companies plan to pursue approval procedures with Dubai's Virtual Assets Regulatory Authority (VARA) and establish a regulatory response framework. The business structure will reflect anti-money laundering (AML), know-your-customer (KYC) and Sharia compliance requirements, and the match between physical gold holdings and issued tokens will be disclosed periodically after third-party verification.
The establishment of the joint venture is expected to strengthen the physical sourcing foundation for HancomWITH's existing gold RWA business. HancomWITH launched the real-world asset blockchain platform 'Ontorium' in April with its affiliate AV Labs.
Ontorium is a platform for issuing the gold token 'OXAU,' which is backed by physical gold with 99.99% purity certified by the London Bullion Market Association (LBMA). The platform is designed to link each gold bar's unique serial number on-chain and track the correspondence between each token and the underlying physical gold.
HancomWITH plans to build an OXAU issuance structure backed by physical gold secured through ADGT's supply chain. It then intends to expand the scope of the business by moving toward on-chainization of mining finance contracts based on gold production volumes.
Song Sang-yeop, CEO of HancomWITH, said that the agreement in July was at the stage of setting direction. He added that the establishment of this joint venture completes the business execution organization and system, and expressed his intent to strengthen the company's position in the Middle East market and expand globally based on its real-world asset-blockchain connection technology and business structure.
Source: TECHWORLD · Kim Seung-gi
Original: https://www.epnc.co.kr/news/articleView.html?idxno=406494
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Source: TECHWORLD
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