Blockchain Consortium to Create Digital Platform for Energy Commodities Tradingbr>
A group of trading houses, integrated energy companies, and banks have joined forces to create a blockchain-based digital platform that intends to modernize and transform energy commodities trading.
The consortium participants are companies from energy majors BP, Shell and Statoil; trading houses Gunvor, Koch Supply & Trading, and Mercuria; and banks ABN Amro, ING, and Societe Generale.
The consortium’s goal is to create a secure, real-time blockchain-based digital platform to manage physical energy transactions from trade entry to final settlement. The group said the platform will allow the sector to move away from traditional paper contracts and operations documentation.
The blockchain platform will reduce administrative operational risks and costs of physical energy trading and improve the reliability and efficiency of back-end trading operations for all supply chain users. It will also open the door to innovative funding and financing solutions. The platform is expected to be operational by the end of the year.
“I am very excited about this initiative,” said Anthony van Vliet, ING’s Global Head of Trade and Commodity Finance, “Marquee brands and competitors in the energy, trade and banking industry sharing one vision gives us a great opportunity to transform processing in the energy trade commodity sector.”