Banks and operators launch first blockchain platform for raw materials

The platform will be managed by a company called komgo SA, based in Geneva, Switzerland, and will be launched in the course of this year.

Global banks and operators are launching the first platform based on block chains to finance the commercialization of raw materials, from oil to wheat, they said in a joint statement on Wednesday.

The platform will be managed by a company called komgo SA, based in Geneva, Switzerland, and will be launched in the course of this year, as per Reuters.

The banks and the main operators have been testing numerous pilot plans with raw materials in recent years, but this venture will be the first to which any company can join.

Between the fundadores of komgo figuran ABN AMRO, BNP Paribas, Citi, Credit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS and Societe Generale.

"Blockchain", originally the platform behind bitcoin cryptocurrency, is seen by many as a solution to deficient operations and transactions and is expected to improve transparency by reducing the risk of fraud.

As a high-tech accounting ledger, the "blockchain" platform uses a shared database that is updated in real time and can process and settle transactions in minutes without the need for third-party verification.

Instead of sharing a mountain of paper among a long list of participants, an operator can use a digital credit note, speeding up transactions considerably.

Komgo will be used first for energy. The first exchanges will be rudimentary charges in the North Sea, the region of reference for most of the world's crude trade.

From the beginning of next year komgo will expand to agriculture and metals. The company will work together with Vakt, an energy marketing platform managed by many of the same komgo shareholders.

The platform will be developed in partnership with the blockchain technology company ConsenSys.