Under the collaboration, ConsenSys will develop an Ethereum based blockchain system to digitize the post-trade funding business and improve efficiency and save costs for the global agribusiness supply chain.
Back in October 2018, the idea of Covantis was framed by four of the world’s largest agribusiness enterprises. The four companies, namely Cargill, Archer Daniels Midland (ADM) Company, Bunge and Louis Dreyfus Company, entered into a partnership to digitize their international shipping processes using blockchain and artificial intelligence.
While the enterprises have been exploring methods to systematize and digitize international agro shipping trades since 2018, the official name of the venture was disclosed roughly two months before.
The founding members revealed name of the endeavor as Covantis on December 4. In addition, the members also unveiled a new website for the project, covantis.io. Furthermore, it was revealed that Stefano Rettore, ADM president and chief risk officer, will head the venture as a third-party advisor until a new CEO is appointed for the venture.
As the enterprise intends to unveil its digital platform in 2020, the arrival of ConsenSys will undoubtedly fast forward the anticipated roll out.
Initially, the initiative will concentrate on mechanizing grain and oilseed post-trade execution procedures.
ConsenSys will offer Covantis with several of its enterprise-level blockchain tools and services, including PegaSys Orchestrate, Kaleido and MythX to develop the blockchain network on Ethereum.
In particular, the company will develop a safe platform on Quorum, a permissioned Ethereum-based blockchain built by key international financial holdings firm JPMorgan.
Excited to share that #ConsenSys was selected as the lead technical partner for Covantis, a new initiative to digitize the post-trade finance industry. #EntEthIsHere https://t.co/JJu4RqlCzm
— ConsenSys (@Consensys) January 23, 2020
Rettore underlined the exceptional technological skill of ConsenSys, voicing trust that the firm would be ideal tech associate for their efforts.
“ConsenSys presented prototypes that demonstrated excellence in its field and has a track record of using blockchain technology to digitize processes in the commodity trade finance industry. We are confident this partnership will allow us to build a first-class product, centered around unparalleled functionality, security and privacy.”
ConsenSys affirmed the partnership through a tweet, while Joseph Lubin, Ethereum co-founder and ConsenSys CEO, underlined that Covantis’ platform is demonstrating the huge capability of blockchain technology:
“The strength of the Covantis initiative’s commitment to leverage innovative, best-in-class technologies to transform global trade operations for agricultural commodities is inspiring. […] This platform is evidence that blockchain technology has started to deliver on its promise of unlocking value through collaboration and removal of information silos within and across industries.”
Agribusiness is one key sector where blockchain implementations are consistently on the rise.
In the final leg of 2019, KPMG, Big Four audit firm, unveiled a blockchain powered tracking platform that is structured to improve transparency and tracking ability of processes in agriculture and other sectors.
Earlier, Cargill, the largest privately run US company by revenue, bought ownership in digital engineering assets to build Hyperledger Grid to simplify logistics by utilizing blockchain technology.