Today we’re excited to share that the Digital Commodity Exchange, the suite of secure and integrated agricultural commodity trading platforms, is now live on the Hedera mainnet. From fertilizer to rice, DCX platforms give improved market access and price discovery. With the transparency, auditability, and power delivered by Hedera’s advanced form of Distributed Ledger Technology (DLT), fraud and risk are significantly mitigated.
In today’s turbulent, fast-changing commodity markets, the ability to ensure trust is vital for producers, distributors, and ultimately consumers. End-to-end supply chain participants need confidence that their deals are with reliable counterparties, that risks can be assessed and managed, and that all stages of the negotiation can be verified by an independent third party without revealing any of the underlying confidential information. The time is ripe for the adoption of digital supply chains.
Hedera’s publicly and independently verifiable record of transactions is a major step forward in providing trust in international commodity markets, an industry historically troubled by fears of fraud and other frictions associated with the physical trade and delivery of commodities. All users on the DCX platform can now verify individual platform events, such as trades, on the Hedera mainnet themselves. By providing full traceability and reassurance that all changes are hashed and recorded on the Hedera Consensus Service (HCS), trust and confidence in each individual transaction is greatly enhanced through a complete audit log.
“We have been really impressed by the Hedera platform which is perfectly designed to bring security to agri-food commodity trading.” Said Stephen Edkins, CEO of DCX. “It provides the trust and transparency for risk to be more accurately assessed and managed. The tamper-proof audit log generated during a trade also allows users to share their verified trading history with suppliers of trade finance and other services. This unlocks access to services that small and medium-sized market participants are currently excluded from and thus broadens the market and drives value creation.”
DCX decided to leverage the Hedera due to its high throughput capabilities, carbon-negative footprint, and the stability of its governance model. The Hedera Governing Council currently consists of 26 global organizations including abrdn, Avery Dennison, DBS Bank, Google, and LG Electronics.
Users are embracing the marketplaces and over 1 million tons of agricultural commodities have been traded since 2020. "Since we became users of DCX, our company has benefited from improved efficiency and faster processes." Said Róbert Jakab, MD of Emirates Foods. "Uploading a trade request and agreeing terms with the seller is very easy. We can quickly and easily agree all contract terms. The biggest benefit is the establishment of long-term business partnerships based on trusted data. The platform is designed to safeguard against fraud and poor quality products."
The Hedera network is the most innovative, sustainable public ledger for the decentralized economy. Hedera’s robust ecosystem is built by a global community, on a network governed by a diverse council of industry-leading organizations, including abrdn, Avery Dennison, Boeing, Chainlink Labs, DBS Bank, Dentons, Deutsche Telekom, DLA Piper, EDF (Électricité de France), eftpos, FIS (WorldPay), Google, IBM, the Indian Institute of Technology (IIT), LG Electronics, London School of Economics (LSE), Magalu, Nomura Holdings, ServiceNow, Shinhan Bank, Standard Bank Group, Swirlds, Tata Communications, Ubisoft, University College London (UCL), Wipro, and Zain Group.
Singapore-incorporated Digital Commodity Exchange (DCX) builds and operates digital marketplaces for the global trade of fertilizer, grains, pulses and rice.