Abaxx Brings Tokenization to Commodities Markets, But Is It Already There?

Abaxx is a Canadian start-up specializing in reducing risk in commodities trading. According to its social media, its Singapore-based platform is set to launch later in 2021. Abaxx has been open about how its platform is planning on using blockchain middleware to try and disrupt current financial practices, but is its technology really so unique? An application recently published for Abaxx refers to receiving an ask price and a bid price for a commodity and generating a token representing the commodity in exchange for cryptocurrency. Tokenization is certainly a useful development for any facet of the financial industry, but Abaxx is not exactly the first to propose this.

Large banks, such as JP Morgan, have already invested in the very market that Abaxx claims to be disrupting. Additionally, other companies, such as Castor & Pollux and Santeri Holdings, have been developing patent portfolios in the space as well. IP Holding companies could complicate Abaxx’s business forcing it to license or even waiting to litigate later. However, JP Morgan presents an even larger problem, as it has an existing platform on which to integrate its technology and patents to back it up. Abaxx may have tools to make it competitive in the market, but it’s far too early to call it a disruptor in a market that seems to be anticipating its technology.

For more on potential financial disruptors, follow the Securities Tokenization Patent Forecast®!