Dubai Multi Commodities Centre to launch blockchain-based sugar trading platform
Mon, 17 Feb 2020, 10:19 am UTC
Dubai Multi Commodities Centre (DMCC), a government entity established in 2002 to enhance commodity trade flows through Dubai, has partnered with Al Khaleej Sugar and Universa Blockchain to develop a new blockchain-based sugar trading platform.
The DMCC Tradeflow platform will enable traders to purchase, store, and trade the sugar of Al Khaleej Sugar through smart contracts on a blockchain technology provided by Universa.
According to a press release, the online platform, currently under development, will offer a secure and transparent central registry of ownership for all commodities in Dubai, starting with sugar. The title of stored commodities can be transferred or pledged through the platform's Sharia-compliant framework.
It will help address the gap in trade finance in the MENA region. The platform will offer enforceable warrants to prove the existence of reserves, and enable secure and transparent international trade.
"DMCC Tradeflow allows physical inventories that are stored in DMCC certified and rated warehouses around the UAE to be converted into electronic negotiable instruments, ‘DMCC Tradeflow Warrants’, governed by a strong and transparent regulatory regime and administered by DMCC," the release said.
Feryal Ahmadi, Chief Operating Officer, DMCC, believes that the platform will drive significant international sugar trade volumes through the emirate of Dubai once it launches.
“This is an exciting agreement, and DMCC is supportive of any initiative that enhances the transparency, speed and security underpinning commodities trade. This partnership will come as welcome news to investors, businesses and the international sugar trade as a whole," he said.
Just recently, DMCC announced its plans to launch "Crypto Valley" in Dubai in partnership with CV VC and its subsidiary CV Labs.
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