Trading Firms and Banks to Launch Blockchain Based Commodities Platform
A recent report from Reuters stated that a few financial, trading and production institutions have come together to form a joint venture for funding the development of a new blockchain based commodities trade platform.
The following list of companies joined together in this venture: Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS, ABN AMRO, BNP Paribas, Citi, Credit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, and Societe Generale. The Swiss-based venture has been dubbed komgo SA.
two blockchain based POCs for energy and soft commodities trading named "Easy Trading Connect 1" and "Easy Trading Connect 2."
This project will focus on digitizing trade and commodities finance processes with the help of a blockchain-powered open platform. The Ethereum-based blockchain infrastructure and solutions group ConsenSys is involved in the development of this platform.
The developers' team of this project has already successfully developed two blockchain based POCs for energy and soft commodities trading named "Easy Trading Connect 1" and "Easy Trading Connect 2."
"one of China's oil companies successfully used a blockchain powered system to transport gasoline from China to Singapore"
The recent press release of Dutch bank ABN AMRO states the following "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."
The komgo project will be ready to go live at the end of this year. Reuters report states that this project will first be used in the energy industry, particularly the trades happening for crude cargoes in the North Sea.
In the upcoming years, the project will include the trading of agriculture and metals industry. It is also to be noted that a blockchain based oil platform company, Vakt is also going to work along with komgo because both these companies share their shareholders.
In April 2017, one of China's oil companies successfully used a blockchain powered system to transport gasoline from China to Singapore.