Transoil International, Solaris Commodities Trial Blockchain For Black Sea Wheat Tradebr>
Solaris Commodities and Trans-Oil International have successfully completed a Black Sea wheat deal using a blockchain platform.
Established in December 2011 in Switzerland, Solaris Commodities is involved in the international trade of agricultural commodities, such as milling wheat, feed barley, corn, oilseeds, and peas. It is the largest trader of Russian corn.
Trans-Oil is a vertically integrated farming, oilseed crushing, trading and transportation logistic provider with operations in Moldova and Ukraine. It controls a unique distribution and export network in Moldova with extension to the Black Sea region and upstream to the Danube basin. More than 80% of the sales of the company are exported via large international traders to EU, Turkey and Asia.
During the blockchain pilot transaction, Solaris sold 25,000 metric ton of Russian milling wheat for December shipment on FOB Novorossiysk, Russia to Trans-Oil. The deal was counducted on an agri-commodity trading and financing platform developed by Swiss startup Cerealia. The financial terms of the deal have not been disclosed.
The goal of the trial is to see if blockchain can minimize risks and conflicts that may arise due to the various stages of the transaction. Cerealia’s platform reportedly enabled fast and paper-less trading and reconciliation of contracts and certificates.
“An independent auditor has reviewed all the important details of the trade from the blockchain and validated the smart contract, digital signatures, signed document and timestamps,” said Cerealia CEO and co-founder Andrei Grigorov. “He also confirmed that data has been encrypted, that no other data has been stored and that all data is up to date.”
Grigorov added that the next stage will involve supporting emerging market traders in their local domestic currencies using FinTech.