Fetch.ai partners with steelmakers to develop decentralized/AI metals exchange

The steel mills and trading firms plan to begin trial transactions on the platform next week.

Today, it was announced that a group of leading Turkish steelmakers and traders, including Baştuğ Metallurgy, have entered into an alliance with artificial intelligence (AI) lab Fetch.ai to help develop a decentralized, blockchain-based and AI-powered, tokenized metals exchange.

Due to be officially launched later this year, the decentralized exchange, powered by Fetch.ai technology, will integrate AI-accelerated blockchain solutions that will allow increased liquidity in the trading of steel, base metals and other commodities.

“I am extremely pleased to be working with Baştuğ and the other steel mills and trading companies which are part of the consortium. Having them on board is a testament to the strength of our project and will speed up our efforts in building this revolutionary marketplace. The decentralized exchange will change the way metals and other commodities are traded and funded.”
– Fetch.ai CEO Humayun Sheikh

The first transaction between Bastug Metallurgy and one of its suppliers is scheduled to take place later this month. The Fetch.ai platform will enable the recording and monitoring of the transaction via an intelligent smart contract.

“We are thrilled to be part of such an innovative project. Our company strives to be at the forefront of technological advancement and we feel that this project really has the potential to change steel and metals trading for the better by dealing with long-standing issues with new technology .”
– Emrah Ugursal, Deputy General Manager at Baştuğ

Fetch.ai Solution

Fetch.ai will enable and simplify digitized trading of these materials through the use of tokens, allowing more market players to gain access to exciting new risk management tools, while maintaining market efficiency and security.

The decentralized platform will also unlock new funding models for supply chain participants by allowing them to collateralize their material and production capacity, which will enable the full realization of the value of the underlying commodity they are holding.

It will also allow spread hedging between raw materials and finished products in a simplified fashion which will help market players to better hedge the portion of the supply chain which is more relevant to them.

While the commodities trading market has struggled to adapt to the blockchain model mainly due to the absence of autonomous monitoring and fraud detection, the Fetch.ai platform with its machine learning (ML)/ artificial intelligence (AI) framework will help solve these issues.

In the physical trading of metals, the integration of machine learning will allow real-time analysis and monitoring of material quality and quantity within a trade flow. Integration of electronic shipping documents and live monitoring of shipping will further ensure fraud detection. For example, the automation of these tasks will enable insurance costs to be priced correctly and dynamically.

For the financial trading of commodity-backed tokens, the use of smart contracts will automate various exchange processes, reducing the administrative burden and costs involved in the transaction.

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