Trade
Banks and commodity traders join forces to launch a blockchain-powered platform
It will facilitate transactions and finance the exchange of physical commodities
Global banks and trading firms have joined forces to launch the world’s first blockchain-powered network for financing the exchange of physical commodities, it was announced two days ago.
The venture in charge of the platform will be called Komgo SA. Based in Geneva, the trading platform is a result of cooperation between 15 founding companies – some of which include the commodity companies Mercuria Energy Group Ltd., Gunvor Group, and Royal Dutch Shell Plc, as well as financial institutions like Societe Generale SA, ING Groep NV, BNP Paribas SA, and Citigroup Inc.
A breakdown
Komgo SA intends to develop a digital distributed ledger-based system to record commodity transactions. Previous efforts to use blockchain technology to facilitate transactions have failed in the exchange of commodities as well as in other industries because of the absence of large, reliable financial institutions in the equation. This venture looks promising since so many banks are involved, many of which are incredibly influential. Consequently, blockchain-based trading platforms, at least to facilitate physical commodity trading, could become the norm.
The platform itself will be developed in partnership with Consensys, a firm that builds applications and infrastructure for the Ethereum network.
The technology will update in real-time, as well as processing and settling transactions in minutes without the need for any third-party verification – a potentially time-consuming process.
Rather than sharing some ridiculous stack of paperwork between an endless list of involved parties, traders will instead be able to use digital letters of credit, speeding up transactions significantly.
Standardization of the KYC process
Komgo SA aims to launch the entire platform by the end of 2018. The first available product will standardize the know-your-customer process. It will then proceed with working on digital letters of credit, which should provide commodity houses with the capacity to submit and digitally trade data and documentation to Komgo partnered banks, ultimately placing the interest of the client ahead of all else.
Related post:
Agriculture could be inching towards a (much needed) digital revolution
You must participate in a contest for among the best blogs on the web. I’ll suggest this web site!
Heya i?m for the first time here. I came across this board and I find It truly useful & it helped me out a lot. I hope to give something back and help others like you helped me.
You really make it seem so easy with your presentation but I find this topic to be actually something which I think I would never understand. It seems too complicated and very broad for me. I am looking forward for your next post, I will try to get the hang of it!
I?m impressed, I have to say. Actually rarely do I encounter a weblog that?s both educative and entertaining, and let me inform you, you might have hit the nail on the head. Your thought is excellent; the issue is something that not sufficient individuals are speaking intelligently about. I am very happy that I stumbled throughout this in my search for one thing regarding this.
One thing is the fact one of the most frequent incentives for using your credit card is a cash-back or perhaps rebate offer. Generally, you will get 1-5 back in various expenses. Depending on the credit card, you may get 1 in return on most expenditures, and 5 in return on expenditures made at convenience stores, filling stations, grocery stores and also ‘member merchants’.
I would like to thank you for the efforts you’ve put in writing this website. I’m hoping the same high-grade web site post from you in the upcoming as well. Actually your creative writing skills has encouraged me to get my own site now. Really the blogging is spreading its wings rapidly. Your write up is a good example of it.
Thank you for any other wonderful article. The place else may anybody get that kind of info in such an ideal approach of writing? I’ve a presentation next week, and I am on the search for such information.