Commodity trading gets easier with the blockchain-based sugar exchange as the world’s largest sugar refinery Al Khaleej Sugar announced the application of blockchain technology in its recently launched trading platform DigitalSugar.io. In today’s blockchain latest news, we are reading more about the platform.
The UAE project will now allow clients to trade the tokenized sugar without a broker and is a part of the Emirate Blockchain Strategy 2021 goals which enables commodity trading. The biggest sugar refinery Al Khalee Sugar announced the application of blockchain technology in its sugar trading platform DigitalSugar.io. The users of the UAE based platform ill trade the spot price of sugar via the tokens that are tied up to 100,000 tonnes of raw sugar with the peg assured by the Universal blockchain that will be issuing electronic warrants of the ownership with the tokens. The traders will be able to hold the tokens representing between 1 kg to 1M tones and will have to pay a .4% in exchange fees as well as 2.5% yearly storage fees.
The platform was launched in partnership with the Free Zone and Government of Dubai Authority on commodities trades and Universal Blockchain that is the first global exchange to offer traders and investors raw spot sugar trades rather than the more common options or futures offered by other current exchanges. The managing director of the company Jamal Al Ghurain said that the launch of a blockchain-based sugar trading platform is falling in line with the goals of the UAE blockchain strategy which the vice president and Prime minister of UAE Highness Sheikh Mohammed bin Rashid launched in 2018.
The Emirate Blockchain Strategy 2021, outlined an ambitious plan to migrate about 50% of the government-related transactions into the distributed ledger technology platforms before the year ends. Sheikh Mohammed said:
“The adoption of this technology will reflect on the quality of life in the UAE and will enhance happiness levels for citizens. 50 percent of government transactions on the federal level will be conducted using Blockchain technology by 2021 … This technology will save time, effort, and resources and enable individuals to conduct most of their transactions in a timely manner that suits their lifestyle and work.”
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