Major Banks, Industry Players to Launch Blockchain-Based Commodities Platform

September 19, 2018
34 Views

A joint Swiss-based venture made up of banks and industry players will oversee a new blockchain-based platform for financing commodity trading.

A group of major global banks, trading firms, and a leading energy company have launched a joint venture that will oversee a new blockchain-based platform for financing the trading of commodities, Reuters reports September 19.

The Swiss-based venture, dubbed komgo SA, has been established by a host of international financing, trading, and production institutions that include ABN AMRO, BNP Paribas, Citi, Credit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS, and Societe Generale.

The venture will digitalize trade and commodities finance processes through a blockchain-based open platform, and has been developed in partnership with the Ethereum-focused blockchain infrastructure and solutions group ConsenSys.

The core development team supporting komgo is responsible for two reportedly successful blockchain based proofs-of-concept (PoC) that have been tested for energy and soft commodities trading, dubbed “Easy Trading Connect 1” and “Easy Trading Connect 2.”

According to a press release also published today from Dutch bank ABN AMRO:

“The first [komgo product] will standardize and facilitate the know-your-customer [KYC] process. The second […] will be a digital letter of credit, allowing commodity houses or other platforms to submit digital trade data and documents to the komgo customer banks of their choice.”

Reuters reports that komgo, which is set to go live later this year, will initially be used for the energy industry, specifically for trades that involve crude cargoes in the North Sea.

As of next year, the platform reportedly aims to widen to agriculture and metals. Vakt, a blockchain-powered oil trading platform that shares many of its shareholders with komgo, is said to be working alongside the new venture.

In April, a subsidiary of one of China’s four major state-owned oil companies successfully completed a shipment of gasoline from China to Singapore that used blockchain tech end-to-end across “all the key participants in the commodity trading process.”

You may be interested

United Kingdom Releases Tax Advice for Cryptocurrency Investors
Crypto News
Crypto News

United Kingdom Releases Tax Advice for Cryptocurrency Investors

btcethereumadmin - December 19, 2018

Cryptocurrency holders in the U.K. can now consult with official guidance on what tax they should be paying on their…

Binance Launches Blockchain-Powered Charitable Campaign in Support of Maltese Youth
Blockchain
Blockchain

Binance Launches Blockchain-Powered Charitable Campaign in Support of Maltese Youth

btcethereumadmin - December 19, 2018

The Binance Charity Foundation has opened a fundraising channel in support of disadvantaged youth in Malta and Gozo. Top crypto…

Bitcoin Extends Price Anniversary Rally to Hit $3,800 as Altcoins Surge Higher
Altcoin
Altcoin

Bitcoin Extends Price Anniversary Rally to Hit $3,800 as Altcoins Surge Higher

btcethereumadmin - December 19, 2018

Bitcoin is seeing a fresh push higher one year after it passed its highest-ever price of $20,000. Wednesday, Dec. 19…

Leave a Comment

Your email address will not be published.