Komgo SA - A Blockchain-based Open Platform Transforming Commodities Trade Finance
In an attempt to transform the global commodities trade finance sector, 15 big conglomerates from different industrial sectors have together launched a blockchain-based open platform called Kogmo SA.
Souleïma Baddi, Chief Executive Officer of komgo SA, said: “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.”
The Kogmo SA blockchain platform is based on the Ethereum blockchain network. The core team behind the development of this platform has successfully tested Proofs of Concept (PoC) for the energy and soft commodities trading.
The fifteen conglomerate giants are world’s leading institutions from different sectors like banking, energy, inspection companies and trading companies. The list includes: ABN AMRO, BNP Paribas, Citi, Crédit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS and Societe Generale.
Toon Leijtens, Chief Technology Officer of komgo SA, said: “The potential that distributed ledger technologies (DLT) have in transforming the commodities sector is clear as evidenced with the success of the Easy Trading Connect experiments. We can now achieve a long-term ambition to improve security and operational efficiency in the commodity trade finance sector.”
The blockchain-based Kogmo SA platforms aims to streamline and optimize the entire process of physical commodity operations. The platform operations will start with the launch of two products initially, expected to arrive before the year-end.
The first product will focus on standardizing the KYC process where the transfer of documents shall be done over the blockchain network in a decentralized manner. The second product will be digital letter of credit. It will let commodity houses to submit digital trade data to all the Kogmo SA customers banks.
The Kogmo SA blockchain platform is developed in partnership with ConsenSys, a blockchain software technology company founded by Ethereum co-founder Joseph Lubin. While commenting on the launch of Kogmo SA, Lubin said: “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.”