Several large international banks, trade firms, and leading energy companies are creating joint blockchain platform komgo SA in Geneva to finance the exchange of commodities.
The project komgo SA is designed to digitize trading and financial processes using an open blocking platform developed jointly with ConsenSys, which specializes in decentralized solutions and infrastructure based on Ethereum block system.
The first product standardizes and simplifies the process of customer identification. The second will be a digital letter of credit allowing companies that sell commodities to provide digital trade data and documents to any banks that are customers of komgo.
The platform should be ready by the end of this year and will be used for the fuel and energy industry, in particular for oil deliveries across the North Sea. Such financial, commercial, and industrial companies include ABN AMRO, BNP Paribas, Citi, Crédit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS, and Societe Generale.
WHY IS IT IMPORTANT?
- The activity of the new platform will significantly expand in the future. Next year, it will spread to agricultural products and metals. The platform will also cooperate with Vakt, a blockchain trading platform for oil trade whose customers include many members of the komgo itself.
- This is not the first experience of using blockchain in the oil sector. For example, in April, a subsidiary of Sinochem Energy Technology, one of China's largest state-owned oil companies, successfully delivered gasoline from China to Singapore using distributed ledger technology.
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