Banks and traders unveil Komgo for blockchain-based trade finance
A group of 15 big name organisations have unveiled a new blockchain-based platform for trade finance.
Called Komgo, the partners who invested in it include ABN Amro, BNP Paribas, Citibank, Crédit Agricole, Gunvor, ING, Koch, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, inspection, verification, testing and certification company SGS and Societe Generale. It will be managed and operated as an independent entity.
The plan is to launch the platform before the end of the year. SGS says this platform will provide “trusted digital ledgers to limit operational risks of fraud, counterfeiting or human error”.
The firm explains that with all data available on the same platform, Komgo “will reduce time spent on processing documents and data, which will in turn speed up the transaction process”.
This development intensifies competition and the use of blockchain in trade finance.
Last month, Standard Chartered teamed with Siemens Financial Services, the financing arm of Siemens, and TradeIX, a digital trade provider, to create blockchain-based smart guarantees for trade finance.
There is of course the Marco Polo initiative. Since launching in September 2017, with BNP, Commerzbank and ING as core banks, it has attracted interest from others, with additional banks including Standard Chartered, DNB, and OP Financial Group joining earlier this year.