Definition ∞ Spot Commodity Trading involves the immediate purchase and sale of raw materials or primary agricultural products. In this market, assets are exchanged for immediate delivery, contrasting with futures or derivatives contracts. While traditionally involving physical goods, the concept extends to tokenized commodities on blockchain platforms, where digital representations are traded. This allows for instant settlement and transparent pricing, potentially increasing market access and liquidity for various assets.
Context ∞ The tokenization of commodities for Spot Commodity Trading on blockchain platforms is a developing trend, aiming to democratize access to these markets. Discussions often concern the legal frameworks for representing physical assets digitally and ensuring proper collateralization. Future developments include the expansion of tokenized commodity offerings, improved regulatory clarity, and enhanced liquidity through decentralized exchanges.
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