Banks Are Going To Transform Trade & Commodity Finance With A New Blockchain Platforms

Several largest banks of the world, including Citi, MUFG and Societe Generale, have united their efforts to carry out venture trades to digitize the trade and commodity finance sector through an open platform based on a blockchain.

Named komgo SA, the new independent organization has the support of 13 banks and trading companies such as ABN Amro, BNP Paribas, Citi, Crédit Agricole, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, and SocGen – as well as the energy giant Shell and SGS, which is the world leader in the field of inspection services, verification, testing and certification.

The decentralized Ethereum blockchain-platform, advanced in partnership with ConsenSys, is oriented at starting the project implementation by the end of the year.

The first will allow to standardize and simplify the know-your-customer (KYC) processes without the use of a central database-the exchange of documents will be carried out in an encrypted form for blockchain.

The second is digital letters of credit allowing merchant houses or other platforms to provide digital trade data and documents to customers of komgo SA.