UAE DMCC and Khaleej Sugar launch Universa’s Blockchain enabled platform
DMCC Free Zone and Government of Dubai Authority on commodities trade and enterprise has launched the DigitalSugar Trading Platform (DigitalSugar.io) in partnership with the world’s largest sugar refinery, Al Khaleej Sugar, and Universa Blockchain.
Developed using Universa’s leading blockchain technology, DigitalSugar will be the first global exchange to offer traders and investors raw sugar on a spot basis, rather than the more common options or futures contracts offered by other current exchanges. DigitalSugar will provide greater access to one of the world’s most popular soft commodities through a fully online platform backed by DMCC Tradeflow, a dedicated online platform for registering possession and ownership of commodities stored in UAE-based storage facilities. Trading through the DigitalSugar platform will be available 24/7 without brokers or a minimum exchange transaction value, allowing both retail and institutional clients to act upon their views whenever and wherever they are.
Sanjeev Dutta, Executive Director – Commodities and Financial Services, DMCC, said: “Driving increased trade through Dubai is at the heart of all that we do at DMCC, and partnerships like this exemplify this commitment. 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.” He added, “This is an exciting moment as we continue to utilise cutting-edge blockchain technology to broaden the range of commodities traded through Dubai.”
Universa Blockchain and Al Khaleej Sugar will use the platform’s services to tokenise up to an initial 100,000 tonnes of raw sugar. The electronic warrants issued by DMCC Tradeflow for the tokenised sugar will be backed by physical sugar reserves and stored in an approved storage facility located in Dubai.
Jamal Al Ghurair, Managing Director, Al Khaleej Sugar, commented: “The sugar trade has operated in traditional ways until recently, but DigitalSugar is set to transform this. Through Universa’s blockchain technology and DMCC’s extensive knowledge of commodities trade, DigitalSugar will undoubtedly boost Dubai’s sugar trade.”
Alexander Borodich, Founder and Chief Executive Officer, Universa, added: “Forming the backbone of a new commodity trading platform is a perfect example of how blockchain is driving one of the trade industry’s greatest advancements in recent history. We are proud to be working with DMCC, an organisation who have shown themselves to be major advocates and adopters of blockchain technology.”
Back in February of 2020 DMCC and Universa announced that they would be launching the Digital Sugar platform this year.
DMCC Tradeflow is an online platform that offers a secure and transparent central registry of ownership for commodities stored in Dubai. The title of stored commodities can be transferred or pledged through electronic warrants backed by DMCC Tradeflow’s robust legal and Sharia-compliant framework.