UAE – Mubasher: Dubai Multi Commodities Centre (DMCC) has launched DigitalSugar Trading Platform in partnership with Al Khaleej Sugar, the world's largest sugar refinery, and Universa Blockchain.
Using Universa’s leading blockchain technology, the new fully online platform will offer the world's first spot contract for raw sugar, according to a press release on Wednesday.
Backed by DMCC Tradeflow, the DigitalSugar platform will enable investors to have access to raw sugar without brokers or a minimum exchange transaction value to facilitate the communication between retail and institutional clients.
Universa Blockchain and Al Khaleej Sugar will use the platform's services to tokenise up to an initial 100,000 tonnes of raw sugar, while DMCC Tradeflow will issue electronic warrants for the tokenised sugar.
These warrants will be backed by physical sugar reserves and stored in an approved storage facility located in Dubai.
The executive director of Commodities and Financial Services at DMCC, Sanjeev Dutta, said: "DigitalSugar is set to democratise access to the trading of raw sugar, allowing retail and institutional traders to invest or speculate on the price changes of sugar on their own terms and at their own convenience."
The Managing Director of Al Khaleej Sugar, Jamal Al Ghurair, noted: "Through Universa’s blockchain technology and DMCC’s extensive knowledge on commodities trade, DigitalSugar will undoubtedly boost Dubai’s sugar trade."
