Amanie Advisors has certified Dubai-based ComTech’s gold-backed token as Shariah compliant, therefore growing the global stable of Islamic gold-based financial products.
Backed by physical gold in the form of standardized 1 kg bars of 999 purity stored in TransGuard safe vaults, ComTech Gold Token (CGO) is listed on LBank and Bitrue.
Incorporated in the UAE this year, ComTech, registered under the Dubai Airport Free Zone Authority, developed the wallet transfer and blockchain ledger infrastructure for CGO on the XDC Blockchain Network.
“Financial instruments like CGO are significantly gaining popularity globally, greatly reflects the growing potential of Islamic financial products among investors. By obtaining this certification, ComTech Gold is well positioned to service Islamic investors looking for Shariah compliant assets to invest,” ComTech CEO Navin D’souza said.
The decision to pursue Shariah compliance perhaps does not come as a surprise considering the background of co-founders D’souza and Jignesh Ved.
Prior to founding ComTech, D’souza was the head of risk management and senior vice-president post-trade strategy for Dubai Financial Markets, a Shariah compliant exchange. Ved on the other hand was attached to Islamic supply chain finance group Tawreeq Holdings from 2015-2019, according to his LinkedIn profile.
Despite the Shariah debates on cryptocurrencies, this new asset class has garnered strong interest among Muslim investors. Malaysia-based digital gold trading platform HelloGold, also certified Shariah compliant by Amanie Advisors, was the first to have its gold-backed token vetted for Shariah compliance back in 2018, following the release of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)’s Shariah Standard No 57 on Gold and its Trading in December 2016. Prior to the standard, which outlined Shariah parameters for the trading and investment in gold, the treatment of gold in Islamic finance was largely vague.
“CGO provides a much-needed variety for Islamic investors to tap into previous metal assets, which have not been sufficiently tap into in the past due to a lack of well-defined Shariah guidelines. With the AAOIFI Shariah standard on gold, we now see an increase in both supply and demand of this asset class,” commented Maya Marissa Malek, CEO of Amanie Advisors Global.