Today Al Khaleej Sugar announced the launch of its blockchain powered sugar trading platform DigitalSugar.io. As reported nine months ago, the solution works in collaboration with the DMCC, the Dubai government’s commodity free trade zone, and uses the Universa Blockchain.
There have been numerous global commodities frauds uncovered in the last few months. Much of this has related to warehouse receipts and bills of lading used to raise finance multiple times. This new solution should help to tackle these issues.
The DMCC Tradeflow platform is being used with the sugar solution, which centralizes the title transfer process for commodities pledged as collateral. This is not dissimilar to the recently unveiled Singapore Trade Finance Registry. The DMCC Tradeflow warrants become negotiable instruments and have been digitized on the Universa blockchain.
Sugar will be able to be traded 24/7 without intermediaries or a minimum exchange transaction value.
“Al Khaleej Sugar implements the most advanced technologies to tokenize commodities and digitize trade amid the COVID-19 pandemic,” said Jamal Al Ghurair, Managing Director, Al Khaleej Sugar. “Moreover, Al Khaleej Sugar is set to update current trade options and tokenize up to 100,000 tonnes of raw sugar.”
Al Khaleej Sugar claims to be the world’s largest stand-alone refinery and processes 3% of global annual refined sugar.
Universa Blockchain has a somewhat controversial reputation for a role in this sort of project. In November last year, inaccurate news about Universa resulted in a trebling of its cryptocurrency price. The issue was Universa’s delay in correcting price sensitive information, despite its awareness of the situation.
Russian newswire Tass reported that Universa would be working with the Central Bank of Tunisia on a central bank digital currency. In fact, it was making a presentation in Tunisia about a private currency uDinar. We were in contact with Universa and received responses from the company over several days explicitly about a CBDC article before they finally made the correction that they were not working on a CBDC.