MUFG executes first letter of credit transaction on komgo blockchain platform
Tue, 21 Jan 2020, 05:16 am UTC
MUFG Bank has announced that it has successfully executed a live digital transaction on komgo, a blockchain-based commodity trade finance platform led by KomGo SA.
KomGo SA was founded in 2018 by a number of leading global institutions including ABN AMRO, BNP Paribas, Citi, Crédit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS, and Societe Generale. The objective was digitizing the trade and commodities finance sector through a blockchain-based open platform.
The platform, dubbed komgo, offers various digital trade finance products that allow commodity traders or corporates to submit digital trade data and documents to banks of their choice. It also offers a KYC module which standardizes and facilitates the KYC process without using a central database, where the exchange of documents is executed with encryption over the blockchain on a need to know basis.
In its press release, MUFG said that komgo allows increased speed through paperless operations, efficiency through digitalization, fraud reduction through data privacy and immutability, and security through encrypted technology.
In collaboration with KomGo SA’s other global shareholders, MUFG said that it is leveraging the platform to promote digitalization within the commodity trade finance industry. As per the details, the first letter of credit was executed on KomGo SA’s platform in MUFG’s London office for Mercuria Energy Trading SA, a commodity trading company.
“MUFG is striving to utilize digital technologies to serve clients more efficiently and improve productivity by automating internal processes. MUFG will continue to support komgo’s global development, using the komgo platform to accelerate digitization of business activities,” the bank said.
Last Nov., MUFG announced a new blockchain consortium, called ST (Security Token) Research Consortium (SRC), to develop next-gen financial transaction service. Members include Accenture, Securitize, KDDI Corp., KPMG AZSA, LayerX and many others.
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