Blockchain Platform For Commodities Trade Finance Announced By Banking And Trading Giantsbr>
Global banks, energy companies and trading firms have joined forces to create a blockchain platform to transform the trade and commodities finance sector.
Dubbed komgo SA, the pltaform has been founded by ABN AMRO, BNP Paribas, Citi, Crédit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS, and Societe Generale. The platform will be run as an independent entity and has been incorporated in Geneva, Switzerland.
“The launch of komgo SA highlights a shared vision for industry innovation and underlines the ongoing commitment among members to build a truly open and more efficient network within commodity trading.” said Souleïma Baddi, Chief Executive Officer of komgo SA.
The platform, which will be developed in partnership with blockchain starup ConsenSys, will start with two products, expected to launch before the the end of year. The first seeks to facilitate the “exchange of documents… in an encrypted way over the blockchain technology on a need to know basis.” The second will allow “commodity houses or other platforms to submit digital trade data and documents to komgo SA customer banks of their choice.”
“We are now entering a new era of simple and inclusive access to blockchain technology to advance stronger, more collaborative, business relationships previously out of reach,” said Joseph Lubin, Co-founder of Ethereum, and Founder of ConsenSys. “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.”
Komgo SA will also be working with blockchain-based post-trade processing platform VAKT to explore synergies between both platforms.
“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” said Toon Leijtens, Chief Technology Officer of komgo SA. “We can now achieve a long-term ambition to improve security and operational efficiency in the commodity trade finance sector.”