(Ecofin Agency) - After the financial, public administration, health, agriculture, and manufactured products’ trading, the commodity trading sector has adopted blockchain technology. Indeed, fifteen large banks and trading institutions recently announced the creation of a blockchain platform to simplify and speed up commodity trading.

Baptised Komgo, this platform that will operate independently aims to make commodity trading financing more efficient, fast and secure.  

Developed in collaboration with ConsenSys, a software company specialized in the Ethereum cryptocurrency, Komgo will offer two main products. The first will be used for real-time verification of clients’ identity with no need to check a database and the second will consist of a digital letter of credit that will be issued based on data gathered from either a Komgo or other platforms’ user.

Thanks to komgo, commodity buyers and sellers would not need to exchange many emails or documents for each step of their transaction. All the documents will be digitalized in the blockchain and transmitted in a fast and secure manner since they have already been digitalized and encrypted.

“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”, said Souleïma Baddi, Komgo S.A's CEO, and former deputy manager of Société Générale Trade and Commodity Finance.  

The founders of the Geneva-based platform are notably, Mercuria, Gunvor, SGS, BNP Paribas, Crédit Agricole, Natixis, Société Générale, ABN AMRO, Rabobank, Citiroup and MUFG Bank.