Japan-based MUFG Bank has completed its first live blockchain transaction on the commodity trade finance platform, komgo.
MUFG executed a letter of credit in London for commodity trader Mercuria. Switzerland-based commodity trade finance platform KomGo was formed by MUFG and 14 other institutions including banks, commodity traders, energy majors, and a certification company.
The platform offers trade finance products such as letters of credit, standby letters of credit and receivables discounting. Additionally, it has a Know Your Customer (KYC) compliance solution, which standardizes the KYC process without using a central database. komgo is based on JP Morgan’s Quorum blockchain, the enterprise version of Ethereum, and aims to digitize trade finance operation to improve efficiency. ConsenSys’ Kaleido helped with developing the hosting network.
The full list of the founders includes — MUFG Bank, ABN AMRO, BNP Paribas, Citi, Crédit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, Natixis, Rabobank, Shell, SGS and Société Générale.
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