ING has successfully executed its first commodity transaction on Komgo, the blockchain-based platform that transmits commodity transactions in a secure environment. The oil trade deal was executed by the Commodity Trade Finance branch in Geneva with a Letter of Credit issued on behalf of Mercuria Energy Trading S.A.
Komgo is a blockchain-based platform that will transform the commodity trade ecosystem. It allows traders, carriers, banks and other participants to securely transact in a highly efficient way, resulting in industry-wide simplification of operations and standardised documentation.
Komgo initially started with two experiments carried out on ING’s Easy Trading Connect platform in energy and soft commodities trading in 2017 and 2018. Currently, Komgo evolved into a venture with 15 shareholders including a mix of corporate and financial players like ING, ABN AMRO, BNP Paribas, Citi, Crédit Agricole, Gunvor, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS, and Société Générale.
Patrick Arnaud, managing director TCF Oil & Gas at ING said: “This is a great example of ING’s persistence to innovate the trade ecosystem and improve our clients experience. This success also shows the strength of close cooperation between multiple departments within the bank: Trade & Commodity Finance, Transaction Services Trade Tribe, and Innovation. This is a new chapter for ING to bring innovation to our clients and drive the Komgo platform to become industry standard.”