Major Banks And Oil Giants Collaborate for a Ethereum Blockchain Commodity Trading Platform

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Komgo SA, an Ethereum based ConsenSys based in Geneva, has developed out of the Easy Trading Connect project, a partnership between Dutch bank ING, and France’s Société Générale and Mercuria energy company.

According to a Bloomberg report from September 19, the three largest independent oil traders – Vitol Group, Glencore Plc, and Trafigura Group along with  BP and Total are absent from the collaboration.  Chief Technology Officer Toon Leijtens stated:

“The potential that distributed ledger technologies (DLT is a consensus of replicated and shared digital data synchronized across organizations or entities. The ledger of data transactions is updated simultaneously across all nodes of the network. Blockchain is a form of DLT, but not all DLT uses the creation of blocks to encode its state.

“>DLT) have in transforming the commodities sector is clear as evidenced with the success of the Easy Trading Connect experiments.”

To accomplish their aim of establishing industry norms, the new trade finance venture is planning two product launches in 2018:  a know-your-customer database that will enable encrypted documents to be exchanged via the blockchain and a blockchain-based digital letter of credit facility. Souleima Baddi, a senior trade-finance banker at Societe Generale SA and chief executive officer of komgo SA said,

“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.”

The blockchain technology is pegged to transform many industries. A recent report by the World Economic Forum foretells emerging “Fourth Industrial Revolution” technologies like blockchain could reduce a global trade finance gap by $1 trillion. Komga SA is likely hoping that collaboration among oil and commodities traders and international banks on a trade finance blockchain spurs wider adoption.

Read more: Alibaba’s Jack Ma Says Blockchain “Meaningless Tech Unless” it aids Manufacturing Industry

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