Commodity traders and international banks have teamed up to form a blockchain technology-based finance platform in the market. These traders believe that this platform will set a standard for the trading of commodities in the oil and other industries. Those who have joined in this Geneva-based venture include commodity giants Gunvor Group, Mercuria Energy Group Ltd. and Royal Dutch Shell Plc.
International banks who are a part of this collaboration include Dutch Bank ING, Macquarie Group Ltd., ABN Amro Group NV, Mitsubishi UFJ Financial Group Inc, Cooperative Rabobank UA, BNP Paribas SA, Societe Generale in France, and more.
The collaborative venture is called as Komgo SA and it is a ConsenSys development based on Ethereum (ETH) network. Developed as an Easy Trading Project, Komgo SA will build a system based on digital ledger technology (DLT). The system will track community transactions such as trades in oil.
As per the report, since some of the biggest names in finance lending are involved in this venture, it will lead to the establishment of a universal norm for using blockchain technology. It should be noted that previous efforts in this direction have met with very little success.
While talking about the launch of a blockchain-based venture in the commodity market, the senior trade-finance banker at Societe Generale SA, Souleima Baddi said that Komgo SA launch indicates the shared vision of industries looking out for innovation.
Baddi who will also serve as the CEO of Komgo in this statement stated further that the ongoing commitment from all the participating members will lead to the building of a truly efficient and open network, says Bloomberg. Until now, the physical-commodities trading field has been putting all its efforts in using the blockchain technology for modernizing the sector, reducing costs and improving security. Unfortunately, its use has been restricted only for selected transactions.
According to ETH News, blockchain is expected to bring transformation in the market of many fields. Even the World Economic Forum recently predicted that blockchain is the emerging “Fourth Industrial Revolution Technology” that can reduce the finance gap of global trade by $1 trillion.
The post Commodity Traders And International Banks To Use Blockchain Tecnhology In Oil Market appeared first on OWLT Market.
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