Busan Digital Asset Exchange Expands Coffee RWA Product e-Coffee, Adds Green Bean Redemption

Busan Digital Asset Exchange is expanding e-Coffee, a coffee-based digital product on its real-world asset platform Bdan, as global coffee prices surge.

The exchange said July 10 that U.S. arabica coffee futures for September delivery reached $3.47 a pound on July 9, up about 40% from a month earlier. The National Oceanic and Atmospheric Administration projects a better-than-99% chance that El Nino will persist through year-end, fueling concerns that coffee supply disruptions may continue.

In response to that market trend, the exchange is offering e-Coffee on Bdan. The digital product is backed by Brazilian arabica green coffee beans and trades in line with international coffee prices.

Launched on June 22, e-Coffee rose about 28% as of July 10, with its price increasing to $11.45 per kilogram from $8.97 per kilogram. Users can trade the product in units starting at 0.1 kilogram. They can also exchange their holdings for physical green coffee beans.

Busan Digital Asset Exchange said the product could help not only retail investors but also businesses that use coffee beans, including cafes and roasteries, manage swings in raw material costs.

"Coffee, like gold and silver, is entering an era of digital trading," Chief Executive Officer Kim Sang-min said. "Starting with e-Coffee, we will introduce a wider range of digital products backed by real-world assets and help broaden the RWA market."