Oil Giants And Major Banks Collaborate on Ethereum Blockchain Commodity Trading Platform

- Advertisement -

September 19, 2018 11:58 PM

Commodity traders, including Shell and Mercuria, are collaborating with a number of international banks to create a blockchain-based trade finance platform they hope will become the standard for the commodity trading industry.

Based in Geneva, komgo SA is an Ethereum-based ConsenSys development that has grown out of the Easy Trading Connect project, a partnership between Dutch bank ING, and France’s Société Générale and Mercuria energy company.

Described as a blockchain-based digital ledger system for tracking commodity transactions, such as oil trades, the new project and independent company is a larger collaboration of those three companies and an additional 12 founders, including Gunvor Group, and Royal Dutch Shell Plc on the commodities side. The partnering 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 reporting from September 19, noted the absence of the three largest independent oil traders – Vitol Group, Glencore Plc, and Trafigura Group – as well as giants BP and Total.

“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 Chief Technology Officer Toon Leijtens.

- Advertisement -

The new trade finance venture, in its aspiration to establish industry norms, is planning two product launches in 2018: a know-your-customer database, which will allow encrypted documents to be exchanged via the blockchain, and a blockchain-based digital letter of credit facility.

Souleima Baddi, a senior trade-finance banker at Societe Generale SA and chief executive officer of komgo SA said, “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.”

Blockchain is pitched to transform many industries. A recent report by the World Economic Forum predicts that emerging “Fourth Industrial Revolution” technologies like blockchain could reduce a global trade finance gap by $1 trillion.

- Advertisement -

Komga SA is likely hoping that collaboration among oil and commodities traders and international banks on a trade finance blockchain spurs wider adoption. 

Melanie Kramer is a freelance FinTech, blockchain, and cryptocurrency writer based between France and Canada. Melanie has studied, and retains an avid interest in, global politics, business, and economics.

Like what you read? Follow us on X @Bitnewsbot to receive the latest ConsenSys, Shell or other Ethereum business and finance news.



Previous Articles:

- Advertisement -

Latest News

Solo Bitcoin Miner Strikes Block, Earns $373K Amid Rising Difficulty

A solo Bitcoin miner earned $372,773 by mining block 907283 on Saturday.The block contained...

Coinbase Base App Rebrand Sparks Zora Token and SocialFi Surge

Coinbase rebranded its Wallet to the Base App on July 16, sparking a surge...

Solana Holds $177 Support as ETF Delays Weigh, Eyes $205 Rebound

Solana (SOL) saw its price fall by 3.2% this week after a strong rise...

Astronomer Turns Viral CEO Kiss Cam Scandal Into Data-Driven Win

Astronomer, a data infrastructure company, faced a viral public incident involving its CEO and...

Japan’s Crypto Bottleneck: Regulation, Not Taxes, Drives Talent Out

Regulatory approval delays are causing crypto startups to leave Japan.A proposed 20% flat tax...

Must Read

8 Best Crypto Debit Cards For Spending Your Digital Tokens

What are | How we chose | Best crypto debit cards | Binance Card? | FAQ | Final WordsCrypto debit cards have transformed how...