The first Blockchain-based platform supported by global banks, trading firms and a leading energy company for financing the traditions of commodities is set to launch around the end of 2018.
The Swiss-based venture, known as komgo SA, has been developed by a host of international financing, trading and productions firms which include ABN, AMRO, BNP Paribas, Citi, Credit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS, and Societe Generale.
The platform will digitalize trade and commodities finance processes via a blockchain-based open platform and has also made a collaboration with the Ethereum-focused blockchain infrastructure and solutions group ConsenSys.
Souleima Baddi, who is the Chief Executive Officer at Komgo SA, said about the project as:
“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 within commodity trading.”
The key development team helping Komgo is accountable for two most likely successful blockchain based proofs-of-concept (POC) which have been tested for the energy and soft commodities trading known as “Easy Trading Connect 1” and “Easy Trading Connect 2.”
As per the press release released by the 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.”
Based on the report, Komgo will be initially used for energy trading, particularly for oil trading in the North Sea. Komgo SA will be work beside the energy trading platform Vakt, which is owned by the same Komgo shareholders. It is also anticipated that the Komgo SA will be available to the agricultural and commodities market in the first six months of 2019.