Al Khaleej Sugar Partners With Tradeflow To Adopt Blockchain In Sugar Trading
Yesterday it was published that Al Khaleej Sugar is proposing a blockchain sugar trading platform. The company is liable for about 3% of the world’s processed sugar output and will utilize the Universa blockchain. Additionally, it has inked an agreement with the Dubai free trade zone’s DMCC Tradeflow platform.
The blockchain platform will allow traders to store, buy, and trade sugar from Al Khaleej, utilizing smart contracts. This will be combined with the existing DMCC Tradeflow platform, which serves as a central commodity registry in the UAE. As an outcome of standardized contracts and DMCC certified and rated warehousing, the DMCC publishes electronic documents of title, which it describes 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 Tradeflow,” stated Jamal Al Ghurair, Managing Director, Al Khaleej Sugar.
By incorporating the title transfer process, DMCC Tradeflow gives peace of mind to bankers to whom the commodities might be guaranteed as collateral. The warrants become negotiable instruments.
Al Khaleej Sugar also hosts the Dubai Sugar Conference, which is recently taking place. At last year’s event, the concept of an international sugar blockchain initiative was drifted. Since then, the world’s biggest agribusiness traders have formally formed Covantis to digitize trading utilizing blockchain.
The blockchain platform Universa has a particular amount of notoriety. Last year it made a presentation at a conference hosted by the Central Bank of Tunisia. Russian news agency Tass announced that Universa would be working on a central bank digital currency (CBDC) and was to launch a test e-Dinar. It was a uDinar backed by local currency deposits and not associated with the central bank, other than appearing at the conference.
While there was a misinterpretation, for days, the company failed to correct the misreporting despite contact from the press. And it retweeted articles about the CBDC. Eventually, it clarified the situation. During that period last November, the cryptocurrency associated with the blockchain fluctuated significantly.
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