ING, Citigroup, Shell Collaborate With Consensys to Create an Ethereum based Blockchain Commodity Trading Platform
In a recent 4-page document titled, “Industry Players and Banks Join Forces to Launch Blockchain Platform to Transform Commodities Trade Finance“, Fifteen of the world’s largest institutions including notable names ING, Citigroup and Shell will collaborate to build a Ethereum based ConsenSys-backed blockchain platform that will digitalize the trade and commodities finance sector via their new joint venture called Komgo SA.
The validity of the document was questioned at first but major publications like Bloomberg, Reuters and even ConsenSys in a tweet corroborated this story.
.@ConsenSys is working with Citi, ING, Shell & more on an #Ethereum #blockchain platform for financing commodities trading. Blockchain is viewed as a solution to trade & settlement inefficiencies and to improving transparency and reducing the risk of fraud https://t.co/sv8KZC7MNX
— ConsenSys (@ConsenSys) September 19, 2018
Komgo SA, as per the document, is a secure platform that is part of an emerging global ecosystem aiming to optimize the whole flow of physical commodity operations. They are also incorporated in Geneva which is considered one of the leading cryptocurrency and blockchain hubs in the world.
The 15 firms that will take part in the venture include:
- ABN AMRO Bank N.V.
- BNP Paribas
- Citigroup Inc.
- Crédit Agricole Group
- Gunvor Group Ltd.
- ING Group
- Koch Supply & Trading
- Macquarie Group Ltd.
- Mercuria Energy Group Ltd
- Mitsubishi UFJ Financial Group Inc.
- Société Générale S.A.
“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,” Souleima Baddi, Senior trade-finance banker at Société Générale S.A. and CEO of Komgo, said in a statement. The venture aims to become the industry standard for a commodity trade finance network.
Along with these fifteen giants, Komgo SA has partnered with ConsenSys which is one of the leading startups for its Blockchain expertise. Joseph Lubin, Co-founder of Ethereum and ConsenSys, wrote
“We are now entering a new era of simple and inclusive access to blockchain technology to advance stronger, more collaborative, business relationships previously out of reach. We are thrilled to see leading commodity trade finance banks and commodity houses come together to create Komgo SA, which will radically simplify and accelerate trustworthiness, auditability, and accessibility to trade financing across the industry.”
Analysts believe that the collaboration will result in ground-breaking innovations and will propel Blockchain growth for the coming months and years. Komgo SA also stated that they will launch two products before the end of this year.
The first will “standardize and facilitate” the KYC processes without the using a centralized database, and the second will be a “digital letters of credit,” which will allow commodity houses or other platforms to submit digitized trade data and documents to Komgo SA and its banking partners.
This is monumental news. Collaborations of this scale will definitely propel Blockchain adoption and ConsenSys, as a result will be the one to lead this new-age revolution.
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