Blockchain Platform for Energy Commodity Trading
A number of of the world’s largest trading houses, energy companies and banks announced plans to back a new venture to develop a blockchain-based platform for physical energy commodities trading.
The venture will be operated as an independent entity, assuming it obtains the required regulatory approvals.
The consortium includes some of the largest players in energy and commodity trading: energy majors BP, Shell and Statoil; trading houses Gunvor, Koch Supply & Trading, and Mercuria; and banks ABN Amro, ING and Societe Generale.
The platform is expected to be operational by the end of 2018.
The goal is to create a secure, real-time blockchain-based digital platform to manage physical energy transactions from trade entry to final settlement.
The platform will be open to the commodity industry.
The intent is to move away from paper contracts and documentation to secure, smart contracts and authenticated transfers of electronic documents.
The platform aims to reduce administrative risks and costs of physical energy trading, and improve the reliability and efficiency of back-end trading operations for all supply chain users, while opening the door to innovative financing solutions.
The backers, who call themselves the Commodity Trading Consortium, have not yet announced a name for the new venture.