Citi Increases Its Equity In Ethereum-based Platform Komgo Specializing In Trade Finance
Citi bank, a founder & investor at Komgo has reportedly increased its stake ownership of the project. The bank is on course with integrating Komgo’s Blockchain Solution with its own trade processing systems. The current scope of the project set to expand in the foreseeable future to include inventory financing and auto-matching of electronic documents.
Komgo, a blockchain-oriented startup, launched in 2018 has been developing an Ethereum based enterprise Blockchain for trading finance. Their platform allows equities traders to maximize on Distributed Ledger Tech by establishing an ecosystem where they can interact with financial intermediaries as well.
Notably, during the unveiling of the project other founder investors were present; they include, Societe Generale, ING Group, and Sumitomo Mitsui Banking Corporation.
The global head of commodity trade finance at Citi, Kris van Broekhoven has highlighted that this would be revolutionary as for almost the last century banking systems have been reliant on manual passing and processing of paper documents. The Blockchain solution offering a unique opportunity of digitalizing the whole industry.
“Now Blockchain technology serves as a catalyst to disrupt the industry towards the processing of electronic data”
According to Kris van Broekhoven, the most appealing part of the venture is that it has incorporated both bank and corporate players in comparison to other Blockchain solutions. The input from all these players then helps Komgo uniquely tailor the Blockchain solution to look out for everyone’s needs, not just the banks.
“It is one of the only consortiums that combines banks and corporates as founders”
Citi has strategically positioned itself to leverage the platform by integrating it with its own systems in a bid to reduce its processing and waiting time. Having bolstered their security, Citi is keen to analyze their investment overheads to make sure the project is working as per requirements.
Komgo set to expand the scope of their Blockchain platform
Currently, the scope of the project has prioritized letters of credit, account receivables financing, and KYC. This is expected to change as they are set to increase the business to include support of inventory financing and auto-matching of electronic documents according to Kris van Broekhoven.