The latest round of tariffs announced by President Donald Trump, dubbed "Liberation Day," is set to shake up global trade. While tariffs often introduce complexities in logistics and compliance, a web3 startup called Watr believes blockchain technology can solve these challenges. Watr’s platform, already utilized by major mining and auto manufacturing companies, claims to offer real-time, automated tariff validation before transactions occur. If successful, this innovation could reshape the $20 trillion global commodities market.
Watr’s Vision for Automated Tariff Tracking
Led by former Shell, BP, and JP Morgan executives, Watr’s blockchain-based platform aims to bring transparency and efficiency to trade regulations. CEO Maryam Ayati, a former executive at Shell Trading, emphasizes that their system can validate tariffs before money even changes hands. This feature could eliminate loopholes exploited by traders who reroute commodities to evade tariffs.
“Some non-Western governments have reported that traders misrepresent their commodity destinations to maximize profits. With Watr, tariff obligations are identified before a deal is finalized, ensuring compliance and fair pricing,” Ayati explained.
How Watr Uses Blockchain for Trade Compliance
Watr’s technology tracks commodities from origin to delivery using decentralized identifiers and digital fingerprints. Initially, the platform focused on ESG tracking, but with shifting priorities, it now centers on tariff and sanctions compliance. The system cross-references trade data with satellite imagery and sensor networks to detect discrepancies.
Additionally, Watr recently migrated to the Avalanche blockchain, a network known for its scalability and institutional adoption. Avalanche has been embraced by financial giants such as JP Morgan and Citibank, underscoring its credibility for high-volume transactions.
The Competitive Landscape: Can Watr Succeed Where Others Failed?
Blockchain solutions for global trade are not new. In 2017, IBM partnered with The Seam to apply blockchain to agricultural commodities, while Shell and ING backed the komgo initiative in 2018 to streamline trade finance. However, many early blockchain-based supply chain projects struggled with adoption.
Independent web3 VC Keld van Schreven sees Watr’s potential but remains cautious: “If Watr can scale its pre-trade tariff validation with real adoption from major players, it could be a game-changer for blockchain in trade. However, execution is key.”
The Future of Blockchain in Global Trade
Watr’s approach represents a shift from blockchain hype to practical application. By modernizing trade compliance infrastructure, the startup could address long-standing inefficiencies in the commodities market. If successfully integrated at scale, this technology has the potential to mitigate tariff-induced slowdowns, enhance transparency, and drive trust in global trade.
As tariff policies continue evolving, businesses will be watching closely to see if Watr delivers on its ambitious promise. Could this be the long-awaited breakthrough that transforms how international trade is managed? Only time will tell, but early signs indicate Watr is on the right track.
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