According to a new Reuters report, in an effort by firms and global banking institutions, the first blockchain-based platform for financial trade of commodities will soon debut. The venture is made by komgo and the range of supported commodities will range from wheat to metals, oil, gold and silver.
Komgo SA is a Swiss-based venture. It’s been established by multiple international financial and trade institutions. Many of them are known worldwide such as: BNP Paribas, Agricole Group, ING, Koch Supply & Trading, MUFG Bank, Shell, SGS and Societe Generale.
Komgo wants to revolutionize commodities trading
The aim is simple, yet ambitious, to revolutionize the digitalization of commodities and trade processes, via the open platform, developed in partnership with ConsenSys. Consensys is an Etehreum-based blockchain infrastructure and solutions group.
The core of the komgo development already has success behind them. They are responsible for two very well-known and successful blockchain based proofs-of-concept (PoCs). Easy Trading Connect 1 and 2 have already undergone testing for energy and soft commodities trading. The results were very optimistic, while also leaving huge room for future growth and improvements. In a statement published by the Dutch bank ABN AMRO yesterday they noted:
“One komgo product will be essential in standardizing and facilitating the know-your-customer (KYC) process. The other one will allow for commodity houses and other platforms to share trade data and documents to the komgo customer banking institutions of their chosing. This essentially makes the second product a digital letter of credit.”
According to the Reuters report, komgo’s debut will be focused in the energy industry. The platform will debut later this year and will be used specifically for trades involving crude cargoes in the North Sea. At the beginning of 2019, the platform will begin to increase to metals and agriculture. Rumors have surfaced that oil is on the short term development list. Due to many shareholders with komgo shares with Vakt, there is a solid amount of speculation about the platform’s involvement in oil.