Not all journeys to blockchain technology projects start with the same first steps. To disrupt a highly traditional marketplace, one company is setting its sights on blockchain but is taking a more conservative primary step.
Open Mineral — a trading platform for physical commodities — has today announced its new online marketplace.
Following a seed funding round of $2.25 million, the company is looking to change the way raw materials are traded. The problem it is solving? Bringing transparency, efficiency, and digital capabilities to a centuries-old market that still relies heavily on traditional transaction methods.
The opportunity here is enormous. The physical commodities market moves raw materials worth hundreds of billions of dollars from producers to consumers around the world. In spite of this, this is a marketplace that often requires physical documentation, and commodity traders are typically needed when trading physical goods. These traders act as go-betweens, taking commissions as trades are conducted with producers and consumers.
In contrast, the launch of Open Mineral Exchange brings sellers and buyers together directly — such as mining and metals companies — without intermediaries, which is designed to keeps costs low and improve 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, told me. “We have redefined the trade of base and precious raw materials, streamlining the complex, slow, and…