Fujitsu announces strategic investment in Digital Commodity Exchange

Fujitsu announces strategic investment in Digital Commodity Exchange

The company plans to focus on grains and other agricultural products, as well as raw materials for manufactured goods

Fujitsu, a Japan-based information and communications technology company, has reportedly announced an investment in DCX (Digital Commodity Exchange). Reportedly, Fujitsu began working with RiceX (a subsidiary of DCX ) in 2019 to employ blockchain for traceability of rice. Since then, the collaboration has grown, coupled with DCX launching its fertilizer exchange FertX, with more commodities in the pipeline.

According to Fujitsu's Head of DX Platform Business Unit, Ichiro Aoyagi, the capability of DCX to innovate commodity trading coupled with Fujitsu's advanced technologies would allow them to accelerate its digital transformation business for customers, industry, and society.

RiceX became operation in late 2020. Following the announcement of its first three transactions in November, the business stated that it intends to have around 20% of worldwide rice buyers and sellers on its platform.

Reports indicate that in 2019/2020, rice production reached 500 million tons with prices averaging around $500 per ton, making it a $250 billion industry. However, as the vast majority of rice is consumed in the country of origin, the $20 billion market that RiceX estimates to target is much smaller.

Following up on rice, DCX is currently enlisting members in FertX, where Fujitsu is a partner. The blockchain platform aspires to optimize the trade process by offering insurance, shipping information, inspections, and automatic settlement to participants. RiceX and FertX both recently reached an agreement with an anonymous trade finance partner.

According to Fujitsu, the company’s next step will be to focus on grains and other agricultural products, as well as raw materials for manufactured goods. Although Fujitsu did not disclose the investment value, the Fujitsu Ventures business has a total fund of Yen 10 billion ($91 million), with this being its first investment.

Source Credit - https://www.ledgerinsights.com/fujitsu-invests-in-blockchain-commodity-trading-platform-dcx/