Open Mineral launches bodily commodities market, eyes a blockchain future

Not all journeys to blockchain expertise tasks begin with the identical first steps. To disrupt a extremely conventional market, one firm is setting its sights on blockchain however is taking a extra conservative main step.

Open Mineral — a buying and selling platform for bodily commodities — has at this time introduced its new on-line market.

Following a seed funding spherical of $2.25 million, the corporate is trying to change the best way uncooked supplies are traded. The downside it’s fixing? Bringing transparency, effectivity, and digital capabilities to a centuries-old market that also depends closely on conventional transaction strategies.

The alternative right here is gigantic. The bodily commodities market strikes uncooked supplies value a whole bunch of billions of from producers to shoppers around the globe. In spite of this, this can be a market that usually requires bodily documentation, and commodity merchants are sometimes wanted when buying and selling bodily items. These merchants act as go-betweens, taking commissions as trades are performed with producers and shoppers.

In distinction, the launch of Open Mineral Exchange brings sellers and patrons collectively immediately — resembling mining and metals corporations — with out intermediaries, which is designed to retains prices low and enhance profitability.

“Today, mining and metals companies often trade with intermediaries, leaving a lot of money on the table due to market inefficiencies and limited transparency,” Ilya Chernilovskiy, cofounder and COO at Open Mineral, advised me. “We have redefined the trade of base and precious raw materials, streamlining the complex, slow, and paper-heavy process, and eliminating the need for intermediaries. Our digital, online platform allows companies to market and source their raw materials directly — increasing efficiency, transparency, and, most importantly, profits.”

The platform at the moment focuses on zinc, lead, copper, gold, and silver focus markets, however might increase into different concentrates sooner or later.

In addition to the transactional platform, Open Mineral gives its customers entry to freight, high quality management, financing, and insurance coverage providers, and consists of prompt messaging, digital doc change, interactive revenue and loss calculators, and extra.

While not a blockchain-technology venture, the service Open Mineral has launched does lend itself to distributed ledgers and tokenization, one thing the corporate is at the moment eyeing for the long run.

“Blockchain indeed brings tremendous value to multiple industries, and commodity trading is no exception,” Chernilovskiy stated. “In fact, at Open Mineral we have joined forces with a technology partner to develop blockchain solutions that would change the way companies run commercial, supply chain, trade financing, and back office activities in our industry — adding profitability, efficiency, transparency, and security.”

Open Mineral is sensible in regards to the work wanted to decentralize such a standard, paper-based market.

“To do that, however, we first need to digitize a lot of processes and documents, and that’s why we have started with a more traditional solution,” Chernilovskiy stated.

So, what’s subsequent for Open Mineral?

“We have proven our business model, so it is now all about scaling,” Boris Eykher, cofounder and CEO at Open Mineral, advised me. “That said, we keep introducing new features every month based on our customers’ feedback. We are also taking a step further in our value by adding trade services and offering our clients access to freight, quality control, insurance, and trade financing.”

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