Watr has launched a new Layer 1 blockchain on Avalanche, built specifically for the $20 trillion global commodities industry. This includes everything from metals and minerals to agriculture and fuel. It’s one of the first real steps toward putting commodity trading and financing on blockchain, not just as a pilot or experiment, but as real infrastructure.
This matters because the way commodities are traded today is still very outdated. Most data is stored in separate systems. Processes are slow. Paperwork is everywhere. It’s hard to get financing, and even harder to track where a product came from. Watr is trying to fix that by making commodity markets more transparent, more flexible, and easier to access.
Why did they use blockchain?
Because the current system doesn’t offer a shared view for everyone. Whether it be producers, traders, banks, and regulators, they all have their own records. If something goes wrong, no one knows who’s responsible. With blockchain, everything is stored in one place, it’s all verifiable and secure. You can trace the full journey of a product. You can check who owns what, when it changed hands, and under what conditions.
Watr chose Avalanche because it lets them build, on the Avalanche blockchain infrastructure, a chain that’s fast and customizable. This is important when working with different types of commodities or regions with strict regulations. Avalanche gives Watr the flexibility to create separate chains for different needs, while still connecting to the wider ecosystem. That’s the power of creating an Avalanche L1; you can create your own customizable infrastructure, depending on your needs (having your own token, using a specific token for gas, complying with certain regulations etc..).
Despite being a $20 trillion industry, real-world assets like commodities have barely scratched the surface of onchain adoption,” said John Nahas, Chief Business Officer at Ava Labs. “Avalanche is built for this exact moment—with sovereign chains, low latency, and institutional-grade performance. We’re proud to support Watr’s mission to enhance commodity markets by opening them to onchain structures and liquidity.”
What are they building exactly?
Watr is creating several tools that work together as a full system:
- WatrMrks: These are digital tags that track the history of a commodity. They show where it came from, if it was certified, and who managed it along the way.
- WatrIDs: A form of decentralized identity for people and companies. It makes onboarding easier, especially for financial institutions that need to follow strict KYC rules.
- NeoReserves: Liquidity pools that make it possible to finance commodities using smart contracts. This helps reduce delays and unlock capital faster.
- VentureStream: A platform for developers building apps for the commodity industry. It connects new builders with experts from the traditional market.
Together, these tools help bring trust, automation, and access to commodity trade. It’s not just about digitizing documents, but rather about changing how the entire system works.
Image retrieved from Watr’s website
The real problem they are solving:
Commodity trading is full of delays, middlemen, and risk. Small producers struggle to get financing. Investors don’t have clear data to assess risk. Regulators face complex audits. These problems are not new, but they’re hard to solve using old technology.
Watr is using blockchain to reduce those problems. With better traceability and identity, it’s easier to trust who you’re trading with. With programmable financing, capital moves faster. And with everything recorded onchain, there’s much less room for fraud or error.
Why it feels different:
Many blockchain projects talk about real-world use cases but lack industry-specific knowledge to really find a way to combine blockchain and the business problem they are trying to solve. Watr is different because the team actually comes from the commodities world. They’ve worked at companies like Shell, BP, and JP Morgan. They know what works and what doesn’t. That’s why their approach is more realistic. They’re not trying to replace the system, they’re trying to make it better.
If blockchain is going to be useful outside of crypto, this is exactly the kind of project we need. It shows how real industries can benefit from new tools, without needing to change everything all at once.