Top banks and industrial giants launch blockchain-based platform for digitalized commodity trading
15 international companies are uniting their efforts for launching a blockchain-based open platform that will digitalize the commodities finance sector.
The new Geneva-based platform called komgo SA is aiming to optimize the whole flow of physical commodity operations. Notably, it will be managed and operated as an independent entity.
“This platform will provide trusted digital ledgers to limit operational risks of fraud, counterfeiting or human error. With all data available on the same platform, komgo will reduce time spent on processing documents and data, which will in turn speed up the transaction process”, the announcement reads.
Komgo SA will start with two products. First one involves a solution that will standardize and facilitate KYC (Know Your Customer) process without using a central database. As reported, the exchange of documents will be executed in an encrypted way over the blockchain on a need-to-know basis. The second product is described as “digital letters of credit, allowing commodity houses or other platforms to submit digital trade data and documents to komgo SA customer banks of their choice”.
Said Toon Leijtens, Chief Technology Officer of komgo:
“The potential that distributed ledger technologies (DLT) have in transforming the commodities sector is clear as evidenced with the success of the Easy Trading Connect experiments… We can now achieve a long-term ambition to improve security and operational efficiency in the commodity trade finance sector.”
At this moment 15 top banks, trade and inspection companies around the world support komgo SA.
— Anne Marie (@AnneMarieTwigge) September 19, 2018
Blockchain company Consensys, which is the largest formation of technologists and entrepreneurs building applications, infrastructure, and solutions on the Ethereum network, is responsible for the development of the platform.
According to Joseph Lubin, the co-founder of Ethereum and Founder of ConsenSys, now it is the time, when everyone is entering a new era, where it is possible to have simple and inclusive access to blockchain technology.
“We are thrilled to see leading commodity trade finance banks and commodity houses come together to create komgo SA, which will radically simplify and accelerate trustworthiness, auditability, and accessibility to trade financing across the industry”.
The main partners of the blockchain-based platform are Shell, Mercuria Energy Group Ltd, Gunvor Group, ABN AMRO, BNP Paribas, Citi, Crédit Agricole Group, ING, Koch Supply & Trading, Macquarie, MUFG Bank, Natixis, Rabobank, SGS and Societe Generale.
Let us remind that last month international banking company Standard Chartered announced its collaboration with Siemens aiming to pilot industry’s first blockchain-based smart guarantees in trade finance.