With the goal of digitalising the financial sector through a blockchain based platform, 15 blue-chip companies have joined together to launch a commodities blockchain platform. Komgo SA is the new independent entity that has been manufactured by the collaborators with backgrounds varying from banking, trading and energy production. Unveiled by ING today, the purpose of Komgo is to connect the global ecosystem which has formed around improving the efficiency of trading commodities.
The Swiss-based company will be producing two products that will be underpinned by the Ethereum blockchain platform. One product allows businesses to verify the identity of its clients through facilitating a know-your-customer (KYC) process.This process involves securely encrypting documents before transferring them on a need to know basis without the use of a central database.
The second product will be digital letters of credit which will be transferred via the platform. Data regarding the transaction has to be transferred and approved before it can be completed which can be a lengthy process and should be improved with this digital makeover. These products will be made available later this year.
Two concepts have already been tested back in February 2017 and January of this year. The prototypes involved the testing of security and efficiency in allowing several parties access to information and a transaction which mirrored the paper-based process, which both showed significant improvements.
The blockchain-powered oil trader, Vakt, has mutual shareholders with the new venture and will be working closely from the start.
The 15 companies behind Komgo SA include:
Crédit Agricole Group
Koch Supply & Trading