Today, Universa Blockchain announced their strategic membership agreement with DMCC and Al Khaleej Sugar. The signing ceremony was held during the Dubai Sugar Conference in Dubai on 10 February 2020.
It was attended by Feryal Ahmadi, the Chief Operating Officer from DMCC, Jamal Al Ghurair, Managing Director from Al Khaleej Sugar and Alexander Borodich, Founder and CEO from Universa Blockchain.
The platform using the Universa Blockchain as a tool facilitating digital trading in sugar is a great example of how blockchain can be used for increasing efficiency and transparency. Under the agreement, the parties will jointly implement DMCC’s blockchain strategy connected to the UAE government’s Blockchain Strategy UAE 2021.
The Universa Blockchain is a digital infrastructure which provides cheap, fast and secure transactions through a distributed network. And from today on, sugar is also represented on the Universa Blockchain Protocol.
“Establishing a new sugar platform is a perfect example of how blockchain can be used to increase efficiency and transparency on an already secure platform.”Alexander Borodich, Founder and Chief Executive Officer of Universa
Powered by the Universa Blockchain, clients can trade, sell and store tokenized sugar due to the integration with the DDMC TradeFlow.
“It is encouraging to see such a prominent player in global trade implementing the next generation of technology. I look forward to seeing the platform grow with the aid of our fully scalable blockchain platform.”
With this trading platform it will be the first time in history that we’ll be able to trade sugar 24/7 with a spot price as a new benchmark. This is all legally possible through the licence of DMCC. It’s the first time in the whole globe to have this spot price for sugar. You can buy or sell any amount of sugar in Dubai instantly. For this, Al Khaleej Sugar is part of this strategic agreement.
The sugar trading platform is built upon the Universa Blockchain. “Any transaction that ever happens, needs UTN (and the internal “U” units) for the fees.”
Dubai Multi Commodities Centre (DMCC)
DMCC is the world’s flagship free zone and Government of Dubai Authority on commodities trade and enterprise.
DMCC has firmly established Dubai as a leading centre for trading international commodities and the world’s fastest-growing Free Zone. They regulate, promote and facilitate trade across a range of goods from gold, diamonds and precious metals to tea, food and industrial materials. In this case, they signed a strategic membership agreement with Al Khaleej Sugar and Universa Block Chain that sees DMCC Tradeflow support the development of a new sugar trading platform in Dubai.
Today, as home to major multinationals and start-ups, DMCC connects more than 17,000 businesses with the world-class services, leading infrastructure and vibrant community they need to thrive and succeed.
The platform under development will enable traders to purchase, store, and trade the sugar of Al Khaleej Sugar through smart contracts on a blockchain technology provided by Universa. The DMCC Tradeflow platform will act as the central registry of ownership of the sugar through enforceable warrants to prove existence of reserves, and enable secure and transparent international trade.
“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. We are confident that when complete, this new platform will help drive significant international sugar trade volumes through the emirate of Dubai.”Feryal Ahmadi, Chief Operating Officer, DMCC
Al Khaleej Sugar
Sugar is the third most traded commodity in the world, after oil and steel. This industry is created a century ago and it’s still working like it did a hundred year ago. There’s no possibility to trade it 24/7 and it doesn’t have a spot price at all. The third partner in this sugar-trading-picture is Al Khaleej Sugar.
Al Khaleej Sugar – literally meaning The Gulf Sugar – appropriately derives its name from the fact that it is the first sugar refinery in the Arabian Gulf Region.
Al Kaleej Sugar was established in 1992 and based in Jebel Ali in Dubai, with a production capacity of 2400MT. Since the commencement of production in July 1995, it made remarkable progress to achieve the status of the largest standalone sugar refinery in the world, which was achieved during last few years, with a production capability of more than 7000 tons per day.
The tokenization starts with 1,6 millions tons digitially, but if this amount is not enough, more sugar can be added to it thanks to other sugar providers, especially from Brazil.
“As the largest standalone sugar refinery in the world, with 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. And as the world leading commodity trading hub, we look forward to working with DMCC to further boost the sugar trade in Dubai.”Jamal Al Ghurair, Managing Director, Al Khaleej Sugar
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 DMCC Tradeflow’s robust legal and Sharia compliant framework. This unique commodities receipt platform addresses the gap in trade finance in the MENA region, by offering enforceable collateral-based trade finance solutions for all participants in the value chain.
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 platform can be used from digitalsugar.io, but for trading sugar you need to register with an invitation code which is handed out at the private conference. Check out the video below to see the first interview about this news with Alexander Borodich.
Universa doesn’t want to stop just with sugar. Sugar is just one of the partnerships that will be launched this year. “If we can trade sugar, we can probably also trade something else. We have a huge pipeline”. In the video above Alexander Borodich hints to watch his previous reports to learn more about future possible opportunities (or check the video yourself to get some dots to connect). “Will it happen or not, we will see” adds Borodich in the interview with Dr Sinsen Joseph.