Al Khaleej Sugar, the world’s largest sugar refinery, formally revealed the use of blockchain technology in its newly introduced sugar trading platform, DigitalSugar.io.

UAE-based platform users can trade the spot sugar price through tokens linked to up to 100,000 tons of raw sugar, with its peg guaranteed by the Universa blockchain, which will issue electronic token ownership warrants. Traders will be allowed to carry tokens ranging from 1 kg to 1 million tonnes and pay .4% in trading fees and a 2.5% annual storage charge.

The platform, launched in partnership with the flagship Free Zone and Government of Dubai Authority on commodities trade (DMCC) and Universa Blockchain, will be the first global exchange to offer traders and investors raw spot sugar trades on an immediate basis, rather than the more common options or futures offered by other current exchanges.

The launch of a blockchain-based sugar trading platform is in line with the broader objectives of the UAE Blockchain Strategy 2021, launched in 2018 by Highness Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, Jamal Al Ghurair, Managing Director, Al Khaleej Sugar said.

An ambitious initiative to move at least 50 percent of government-related transactions to distributed ledger technology (DLT) platforms before the end of this year is outlined in the Emirate Blockchain Strategy 2021.

Sheikh Mohammed said that this technology’s adoption would impact the UAE’s quality of life and increase citizens’ levels of happiness. By 2021, 50 percent of federal government transactions will be carried out using Blockchain technology, saving time, effort, and money and allowing people to carry out most of their transactions on time that suits their lifestyle and work.

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