Banks and energy leaders to back blockchain-based trading platform

Banks and energy leaders to back blockchain-based trading platform

For the first time, global energy, banking and commodity trading firms are teaming up to invest in a new venture aiming to improve the management of physical energy commodities trading. The digital platform will be based on blockchain technology and will be operated as an independent entity. 

Among the participants figure energy giants BP, Shell and Statoil; trading houses Gunvor, Koch Supply & Trading, and Mercuria; as well as banks ABN Amro, ING and Societe Generale.

This new venture intends to modernize physical energy trade from entry to final settlement, by developing a secure, real-time blockchain digital platform. The goal of the venture is to reduce risks and costs linked to the operational and administrative management of energy trading, as well as to provide a smoother and more secure trading environment. It will also, with the support of banks’ subject-matter expertise, allow innovative finance solutions to be implemented on the whole supply chain.

The several investors combine here their respective expertises with the ambition to develop a project meant to result in the exclusive use of blockchain technology to manage physical energy trading data, enabling a faster, more qualitative and less expensive process.

The project is expected to be operational by the end of 2018.

Read more here. By Jean Leguy, Research Analyst at Holland FinTech.]]>

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