A New Commodities Platform Based on BLOCKCHAIN Technology Is Getting Ready For Its Maiden Voyage

By Jorge Reano

BLOCKCHAIN is taken as a serious alternative more every day.  Export Portal was able to see this sound alternative from the start and has incorporated it as part of its own platform because of the safety and fluidity it offers to International Trade Transactions.

Now, a new venture called komgo SA, based in Switzerland (Geneva) will be going live at the end of 2018, according to a report from Reuters.

This new platform is joining together well known world banks as well as trading corporations whom are betting on the viability of BLOCKCHAIN Technology to support, improve transparency, and solve inefficiencies in the current International Trade practices, while reducing fraud.

Per Reuters’ report, the members of komgo SA are: ABN AMRO, BNP Paribas, Citi, Crédit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS and Societe Generale.

According to Souleima Baddi, the Chief Executive Officer of komgo SA, “…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 within commodity trading.”

In order to avoid an immense amount of paperwork across a long line of trade partners and intermediaries, traders will be able to set up and utilize a digital Letter of Credit, thus, speeding up the transaction process.

By using a BLOCKCHAIN shared database which updates in real-time, without needing third-party verification, transparency and speed of use will be increased exponentially.

The initial trades will be crude oil in the North Sea which is used as a benchmark in that specific market segment.  Afterwards, komgo SA will expand the trades to the agricultural and metals trade segments.

As we can see, Blockchain is becoming the key which will open the future of International Trade.