Oil giants and major banks collaborate on Ethereum Blockchain commodity trading platform


19 September 2018 11:58 PM

Raw materials traders, including Shell and Mercuria, are working with a number of international banks to create a blockchain-based commercial finance platform that they hope will become the standard for the raw materials trade industry.

Based in Geneva, komgo SA is a development of ConsenSys based on Ethereum which grew out of the Easy Trading Connect project, a partnership between the Dutch bank ING and the French energy company Société Générale and Mercuria.

Described as the blockchain-based digital registries system for tracking commodity transactions, such as oil, the new project and the independent company, is a broader collaboration between these three companies and 12 other founders, including Gunvor Group and Royal Dutch Shell Plc. The partner banks include ABN Amro Group NV, Cooperatieve Rabobank UA, Macquarie Group Ltd, Mitsubishi UFJ Financial Group Inc., Natixis SA, BNP Paribas SA, Citigroup Inc. and Credit Agricole SA.

However, Bloomberg referring to it since 19 September, found the absence of the three major independent oil operators – Vitol Group, Glencore Plc and Trafigura Group – as well as the giants BP and Total.

"The potential of distributed ledger technologies (DLT )" Transforming the raw materials sector is clear, as demonstrated by the success of Easy Trading Connect experiments, "said Chief Technology Officer Toon Leijtens.

The new commercial venture finance, in its aspiration to establish industrial standards, is planning two launches of products in 2018: a database of know-your-customer, which will allow the exchange of encrypted documents via blockchain and a digital letter of credit based on blockchain

Souleima Baddi, a senior de-finance banker with Societe Generale SA and chief executive officer of komgo SA, said: "The launch of Komgo SA highlights a shared vision for innovation in the sector and emphasizes the constant commitment among members to build a truly open and more efficient network. "[19659004] Blockchain is ready to transform many industries A recent rappor The World Economic Forum predicts that the emerging technologies of the "Fourth Industrial Revolution" such as the blockchain could reduce the $ 1 trillion global financial gap.

Komga SA probably hopes that the collaboration between oil and commodity traders and international banks on a blockchain of commercial finance will stimulate wider adoption.

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