CAMBRIDGE, UK / ACCESSWIRE / October 15, 2019 / Fetch.ai is pleased to announce the completion of the first transaction on its ground-breaking decentralized metals exchange (DEX). The milestone event marks a shift in how metals and other commodities can be traded, thanks to Fetch.ai’s innovative AI-powered blockchain technology.
The trade, which was conducted between Turkish steel giant Baştuğ Metallurgy and one of its suppliers heralds a new era for the steel industry while showcasing a real world application of decentralized finance (DeFi).
“The successful completion of the trade will be looked back on as a historic moment for metals trading,” said Fetch.ai CEO Humayun Sheikh. “This is only the beginning. Working with a consortium of steel mills, shipping companies, trading firms, trade banks and brokerage houses, we look forward to watching Fetch.AI’s decentralized trading platform grow to support a thriving metals trading market, with physical delivery of assets.”
The project provides an example of the benefits of DeFi when applied to traditional markets, facilitating decentralized trading of commodities, and other assets. The decentralized exchange (DEX) will record and monitor the trading of metals, using a highly scalable Smart Ledger built by Fetch.ai, creating a globally accessible and transparent means of exchange for commodities. The metals DEX also enables trades to occur directly between counterparties without the need for intermediaries and could be extended to other commodities.
Fetch.ai’s platform will ultimately allow supply chain businesses to collateralize the assets and commodities in their possession, increasing cash flow and available funds at any given time. It will also pave the way for simpler spread hedging between raw materials and finished products, offering greater process flexibility and a more granular approach.
Until recently, the trading of commodities via tokenization remained a pipe dream, with the practical application of the technology proving more elusive than first imagined. The major hurdle which so many have found impossible to clear has been a lack of monitoring and fraud detection which is necessary to foster trust in any decentralized commodity market. Thanks to its experience of creating decentralized markets in a number of sectors, Fetch.ai has overcome these issues by using f machine learning and artificial intelligence.
Fetch.ai is at the forefront of accelerating research and deployment of emerging technologies, including blockchain and AI. Its solutions are designed for people, organizations and IoT. The project has created an Open Economic Framework (OEF) that serves as a decentralized search and a value exchange platform for various autonomous economic agents. This is supported by a smart ledger that can support more than 30,000 transactions per second, and which is ready to meet the demands of the next generation of connected devices. Fetch.ai has digital intelligence at its heart: delivering actionable predictions, instant trust information, enabling the construction of powerful collaborative models, improving efficiencies and streamlining processes.
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