Swiss Companies Partner to form Blockchain-driven Commodities Trading Platform
As per a report published on Reuters, several Swiss corporate institutions recently partnered to form a joint blockchain-driven platform whose objective is to finance the trading of commodities. The venture, called komgo SA, is made of a collection of banking institutions, trading firms and a prominent energy production company. The founding partners 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.
Notably, the komgo SA platform will leverage blockchain technology to digitize trading transactions. The platform's infrastructure is based on the Ethereum blockchain and was developed in collaboration with ConsenSys. Moreover, the development team that oversaw the designing of komgo SA has previously created two blockchain-based proof-of-concept protocols for energy and soft commodities trading platforms. These solutions were known as ‘Easy Trading Connect 1' and ‘Easy Trading Connect 2' respectively.
Concerning this matter, ABN AMRO, a Netherlands-based bank, stated in a press release that the pioneering version of komgo will standardize and support the KYC process. Additionally, the second version of the platform will feature a digital accreditation that enables users to remit digital trade information and documents to their preferred bank within the komgo SA ecosystem.
However, Reuters have indicated that komgo will initially be deployed in the energy sector, precisely in the crude cargoes business in the North Sea. Moving forward, the platform will extend its services to the metals and agriculture industries. Reportedly, Vakt, a blockchain-powered oil trading company, is working with komgo towards the realization of these goals. Earlier in April, Chinese state-owned oil firms successfully shipped gasoline from China to Singapore using an end-to-end blockchain service. Here, all stages of the shipment involved the application of blockchain technology.