As President Donald Trump announces new tariffs, dubbed “Liberation Day,” a web3 startup called Watr aims to revolutionise tariff tracking for goods entering and leaving the USA through its blockchain platform. While similar claims have come from various startups in the web3 space, Watr stands out as it already has established use cases with large mining firms and automotive manufacturers for validating commodities.
Founded by former executives from Shell, BP, and JP Morgan, Watr is led by Maryam Ayati, who has extensive experience in trading operations. The company has garnered significant financial backing from unnamed crypto venture capitalists and commodities industry leaders, reportedly securing millions in funding.
Ayati has noted that Watr plans to enhance its data verification capabilities by incorporating machine-sourced information from satellites, sensors, and open-source databases to track commodity origins more accurately. This could allow for pre-trade checks on potential tariffs, tackling issues where commodities are misrepresented regarding their destinations, thus ensuring that traders comply with tariff obligations and fair financial practices.
The global commodities industry, valued at approximately $20 trillion, represents substantial stakes in these developments, which could mitigate delays caused by tariff enforcement. Watr’s platform utilises blockchain technology to track commodities by employing decentralised identities and digital fingerprints, aiming to improve trust, traceability, and liquidity within the market.
Initially, Watr focused on tracking commodities’ provenance concerning environmental regulations, but, facing changes in the market’s emphasis, the company is now pivoting towards managing sanctions and tariffs. This shift is designed to assist clients in navigating complex regulatory landscapes effectively.
Recently, Watr announced its transition to the Avalanche blockchain, which enables the creation of “sovereign chains” tailored to specific industry needs—a move already adopted by prominent financial institutions like JP Morgan and Citibank.
While Watr represents a new chapter in using blockchain for commodities trading, similar initiatives have emerged before. In 2017, “The Seam,” focused on agricultural trading, partnered with IBM for blockchain-based cotton trading. Also, the 2018 komgo initiative, backed by major industry players, aimed at improving trade finance through digitalisation.
However, many previous projects have not succeeded in gaining traction, leaving room for Watr to prove its model. Keld van Schreven, a web3 venture capital expert, expressed cautious optimism regarding Watr’s ambitions, noting that market performance will determine success. He highlighted the significance of their move to Avalanche as an indication of their scalability plans, while reiterating that actual transaction volume and industry acceptance post-pilot are crucial for long-term impact.
In essence, Watr’s blockchain solution seeks to connect the dots in global trade, offering technology that may ultimately serve to simplify compliance and expedite transactions amid an evolving regulatory environment.
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