By Staff Writer
A consortium of big global banks and trading firms have launched what is purportedly the world’s first platform for commodities trading powered by blockchain, Reuters reported on September 19.
The Geneva-based venture, named as komgo SA, includes a mix of banks and traders as ABN AMRO, BNP Paribas, Citi, Credit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS, and Societe Generale.
According to a press release also published by Dutch bank ABN AMRO:
“The first [komgo product] will standardize and facilitate the know-your-customer [KYC] process. The second […] will be a digital letter of credit, allowing commodity houses or other platforms to submit digital trade data and documents to the komgo customer banks of their choice.”
The platform will run on an Ethereum protocol in partnership with a blockchain solutions provider ConsenSys.
Energy trading will be the first experiment for komgo, with the first trades to include crude cargoes in the North Sea, the report said.