A group of the world's largest banks, trading firms and a leading energy company have launched a joint venture that will monitor the new Blockchain platform designed to finance commodity trade.
The Swiss company, known as komgo SA, was founded by a number of international financial, trading and manufacturing institutions, which include: ABN AMRO, BNP Paribas, Citi, Credit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS and Societe Generale.
The company will digitize the financing of commodity trade through an open platform based on Blockchain and developed in partnership with the ConshenSys group, focused on the Ethereum Blockchain infrastructure.
The main development team supporting komgo is responsible for two reportedly successful PoC protocols that have been tested for trading in energy and soft goods, called Easy Trading Connect 1 and Easy Trading Connect 2.
According to a press release published today by Dutch bank ABN AMRO:
"The first product will standardize and facilitate the know-your-customer process [KYC]. The second one will be a digital letter of credit allowing merchant houses or other platforms to provide digital data and documents on trade to customer banks of their choice. "
The source reports that the project, which is going to be published at the end of this year, will initially be used for the energy industry, in particular for bidding, which include cargo in the North Sea. "
In April, a subsidiary of one of China's four largest state oil companies successfully completed the shipment of gasoline from China to Singapore, which used blockchain technology to link all "key players in the commodity trading process."
Recall that it was previously reported that the UK's leading port operator will use Blockchain technology in the port logistics sector.
