ING Group, the Dutch multinational banking and financial services company, is optimistic about blockchain technology and the innovations it presents to commerce and raw materials.
The group is focusing on and awaiting blockchain-based initiatives in various sectors including energy, crude oil, soybeans, metals and mines in 2019.
They have explored Ledger (DLT) technology on their Easy Trading Connect (ETC) platform since 2017 and have found that innovations led by blockchain they are far superior to the centralized models.
ING highlighted these findings regarding power programs like Komgo and Vakt via Twitter:
Distributed Ledger Technologies (#DLT) are destroying the #financial industry and make processes more efficient and safer. Let's take a brief moment to look back at the ING 2018 results in this area. #blockchain #innovation #fintech pic.twitter.com/vT30euwVZN
– ING (@ING_news) December 27, 2018
ING focuses on Vakt not Bakkt
As you may already know, the blockchain and the cryptosphere have been excessively excited by the potential Bitcoin ETF and the launch of Bakkt, a Bitcoin futures exchange physically regulated by the Intercontinental Exchange (ICE).
While these looming developments are worth the effort, ING has its eyes on other innovative blockchain initiatives surrounding commodity trading and finance. One of these initiatives is Vakt.
Vakt is a post-commercial management platform with a vision to digitize the global commodity trade sector by providing a secure and reliable ecosystem powered by blockchain. The platform has the potential to revolutionize the commodity trading market by transforming the commercial life cycle and streamlining transactions.
The Vakt platform has the support of large energy consortia, high-profile independent traders and top-tier banks. Vakt also has strategic alliances with Deloitte and Softworks and by the end of the year will link the platform to Komgo for commercial commodity finance.
As per company ad of the launch:
Although the initial launch is limited to specific trade in BFOET crude oil contracts, VAKT's ambition is to extend the platform to all physically traded energy assets. The company is building its roadmap in response to the needs of the sector, but has predicted that US crude pipelines and barges of refined northern European products are scheduled for launch in early 2019.
Other blockchain initiatives
The director of ING's program for blockchain innovation in commodity trading and finance, Arnoud Star Busmann, said a collaboration with heavyweight leaders in the industrial sector constituted a blockchain based on Ethereum for regulation in real time of physical energy transactions.
A relationship on experimental trading technology said:
The experiment showed that the average time for a bank to complete its role in a transaction has gone from about three hours to just 25 minutes. For traders, efficiency increased by a third, with user experience ratings far higher than expected. Because the prototype uses blockchain technology and is designed for paperless trade, even the risks throughout the process have been reduced.
This Ethereum-based platform mentioned in the above quote was used in the agricultural sector in a pilot test that moved soy from the United States to China.
ING is also exploring the traceability of the supply chain for metals and mining. The innovations and the cases of use of blockchain technology are endless and blockchain initiatives are really put to the test.
ING is at the forefront of the blockchain revolution and is focusing on many blockchain initiatives going into 2019. Things like the Bakkt and Bitcoin ETFs do not even scratch the surface of what is happening in space.
By 2019, the blockchain and cryptocurrency industry has much to expect when companies, governments and individuals feel comfortable with blockchain and cryptocurrency technology innovations.
What do you think of companies and institutions that experiment and implement blockchain technology? Will this also lead to the adoption of cryptocurrencies? Let us know what you think in the comments section below.