Victor Ugochukwu · Dec 14, 2020 . 5min read
Commodity trading gets easier with Al Khaleej Sugar’s Blockchain-based platform DigitalSugar.io
The UAE's Al Khaleej Sugar declares the adoption of blockchain technology to trade tokenized sugar via the DigitalSugar.io platform.
By Komal Joshi · Oct 27, 2020 . 6min read
Commodity trading is all set to get easier with the blockchain-based sugar exchange. The world’s largest sugar refinery Al Khaleej Sugar declared the application of blockchain technology in its newly launched trading platform DigitalSugar.io. The UAE project will now enable clients to trade the tokenized sugar without a broker. This is a part of the Emirate Blockchain Strategy 2021 goals that allows commodity trading. The Emirate Blockchain Strategy 2021 is an enthusiastic plan to transfer approximately 50% of the government-linked transactions into the DLT (distributed ledger technology) platforms before the year ends.
DigitalSugar is the result of the collaboration between DMCC and Universa Blockchain.
The DigitalSugar.io platform is the result of the collaboration between flagship Free Zone and Government of Dubai Authority on commodities trade (DMCC) and Universa Blockchain. For the uninitiated, DMCC is an online platform. Moreover, it provides a secure and transparent central registry of ownership for commodities stored in Dubai. The title of stored commodities can be transferred or pledged via electronic warrants. The DMCC Tradeflow’s robust legal and Sharia-compliant framework backs electronic warrants.
Generated using Universa’s leading blockchain technology, DigitalSugar.io will be the leading global exchange. Currently, exchanges offer traditional options or futures contracts. However, it will provide traders and investors raw sugar on a spot basis. Moreover, trading via the DigitalSugar.io platform will be accessible 24/7 without brokers or a minimum exchange transaction value. Thus, providing both retail and institutional clients to develop upon their views with ease.
Moreover, the users will trade the spot price of sugar via the tokens that draw up to 100,000 tonnes of raw sugar. Additionally, physical sugar reserves will support the electronic warrants by DMCC Trade flow for the tokenized sugar. The traders can possess the tokens serving between 1kg to 1M tones. However, they will have to pay a .4% in exchange fees as well as 2.5% yearly storage fees.
Managing Director of Al Khaleej Sugar, Jamal Al Ghurair elucidates that the launch of a blockchain-based sugar trading platform. It is in regards to the broader goals of UAE Blockchain Strategy 2021, Prime Minister of the UAE and Ruler of Dubai, Highness Sheikh Mohammed bin Rashid, launched in 2018.
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