Top Banks, Industries To Launch Blockchain-Based Commodity Platform
A consortium of major world banks, trading firms and an established energy company have formed a joint venture that will oversee a new blockchain – based platform to fund commodity trading, Reuters said on September 19.
The Swiss company named Komgo SA was founded by a number of international financial, trade and manufacturing institutions, including ABN AMRO, CITI, BNP Paribas, Gunvor, The Crédit Agricole Group, ING AND Koch Supply.
The company will digitize the trade and commodity financing processes via a block-chain-based open platform and was developed in collaboration with the Ethereum-focused block-chain 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.”
Dutch bank ABN AMRO’s press release says
“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 will be launched this year, will initially be used for the energy industry, especially for trading in raw materials in the North Sea. Starting next year, the platform is to be expanded to include agriculture and metals.
Vakt, a blockchain oil trading platform that shares several of its shareholders with Komgo, will work with the new company. 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.”