(Repeats Monday item)
May 22 Many commodity groups, banks and
technology companies are seeking to modernise the commodity
sector and scrap millions of paper documents through using
blockchain, the technology first developed for the
Below are details of what various firms are doing to roll
out blockchain in the commodity sector.
MERCURIA - Completed a pilot oil trade earlier this year,
working with bank ING and Societe Generale,
in which a "smart contract" letter of credit was set up on a
blockchain while the traditional paper process ran in parallel.
GUNVOR - Had several discussions with banking partners on
the topic and "we're prepared to cooperate going forward", a
TRAFIGURA - Partnered with IBM and Natixis
to put together a platform for U.S. crude oil deals, using IBM's
blockchain technology Hyperledger Fabric.
DREYFUS, CARGILL, OLAM - Members of a blockchain
consortium working on a supply chain and trading system for the
cotton industry using Hyperledger Fabric.
HSBC - Worked with Bank of America Merrill Lynch
and the Infocomm Development Authority of Singapore last
year on a proof of concept regarding replicating a letter of
credit on a distributed ledger.
In January, HSBC joined with six other banks to work on a
blockchain platform for trade among European small and
BARCLAYS - In September, carried out what the bank
billed as the world's first trade transaction using blockchain
along with Israel-based start-up company Wave.
CITIGROUP - Looking at how to use blockchain across
all products and the bank has some investments in companies in
the sector, but so far nothing unique to commodities was being
pursued, executives said in February at a media roundtable.
ING, SOCIETE GENERALE - Worked with Mercuria on
blockchain pilot (see above).
STANDARD CHARTERED - Completed a proof of concept
along with DBS Bank and Infocomm Development Authority of
Singapore using blockchain for trade finance invoicing.
COMMONWEALTH BANK OF AUSTRALIA, WELLS FARGO
- In October, completed a blockchain transaction with Brighann
Cotton involving a shipment from the United States to China.
ICICI BANK, EMIRATES NBD - The Indian
and Middle Eastern banks executed trade finance transactions
using technology from EdgeVerve Systems, a unit of Infosys
BTL - The Canadian-listed firm launched a
three-month blockchain pilot in March with European energy
companies including Austria's Wien Energie using its Interbit
platform, focusing on the reconciliation process.
WAVE - Israeli start-up with blockchain technology to allow
the shipping sector to move from paper to digital bills of
GFT Technologies - The German software group
launched a blockchain prototype for the physical commodities
sector in January 2016. The firm in discussions with several
commodity producers regarding its permissioned model, which uses
Ethereum, an open-source blockchain platform.
R3 - A consortium of over 80 financial institutions and
regulators, which developed the Corda distributed ledger on an
HYPERLEDGER - An open source blockchain collaboration hosted
by the Linux Foundation, aiming to develop open protocols and
(Reporting by Eric Onstad; editing by David Stamp)