Quick Intake
Hello all, In this article, let us see How Blockchain has been deployed in the trade of Sugar.
Al Khaleej Sugar, A Major sugar trading company in UAE has planned trade its products via smart contracts and Blockchain. It has partnered with Universa Blockchain.
Under this concept, Traders shall buy, store and trade sugar from Al Khaleej using smart contracts. It is integrated with the existing DMCC Trade flow platform, which acts as a central commodity registry in the UAE.
The holder will be given a warrant (Token) which can be used as Negotiable instruments and are thus transferable.
Also, Holders can pledge the same with banks & Financial Institutions which ensures more trust from Mortgagee/Lenders.
Also refer to the previous posts, which give insights on various projects taken by UAE to retain its leadership in emerging as a blockchain capital of ASIA.
Happy Reading…
Al Khaleej Sugar is planning a blockchain sugar trading platform. The company is responsible for about 3% of the world’s refined sugar output and will use the Universa blockchain. Additionally, it has signed an agreement with the Dubai free trade zone’s DMCC Trade flow platform.
The blockchain platform will enable traders to buy, store and trade sugar from Al Khaleej using smart contracts.
This will be integrated with the existing DMCC Trade flow platform, which acts as a central commodity registry in the UAE. As a result of standardized contracts and DMCC certified and rated warehousing, the DMCC issues electronic documents of title, which it calls warrants.
“As the largest standalone sugar refinery in the world, with the capacity to hold more than 1.6 million tons of sugar, we are delighted to be able to set up a sugar platform on such a robust and established platform as DMCC Trade flow,” said Jamal Al Ghurair, Managing Director, Al Khaleej Sugar.
By centralizing the title transfer process, the DMCC Trade flow provides peace of mind to bankers to whom the commodities might be pledged as collateral. The warrants become negotiable instruments.
Al Khaleej Sugar also hosts the Dubai Sugar Conference, which is currently taking place. At last year’s event, the idea of an international sugar blockchain initiative was floated. Since then, the world’s largest agribusiness traders have officially formed Covantis to digitize trading using blockchain.
About DMCC Trade flow –
A Dedicated flexible and customized online platform for registering possession and ownership of commodities stored in UAE based storage facilities.
It is a specialized, interactive ownership registry that brings together all stakeholders related to the trade and financing of physical commodities.
