EconoTimes – French investment bank Natixis, Singaporean multinational commodity trading company Trafigura, and technology giant IBM have pioneered the first blockchain solution in commodity trade finance for US crude oil transactions. This initiative particularly aims to modernize trading in the global crude oil industry, which currently is predominantly driven by manual, non-digital processes. Built on the Linux Foundation open source Hyperledger Fabric, the distributed ledger platform allows major steps in a crude oil transaction to be digitized on the blockchain, ensuring improved transparency, enhanced security, and optimized efficiency. “Natixis wants to use blockchain to enhance client service by optimizing the antiquated arena of commodity trade finance,” said Arnaud Stevens, Natixis’ New York Head of Global Energy & Commodities. “The current process is paper and labor intensive, we have multiple friction points with high processing costs and limited automation. Distributed ledger technology brings some much-needed innovation into our industry.” The new trading platform allows trade documents, shipment updates, delivery and payment status to be shared across a single shared ledger, helping to reduce transaction time, duplication of documents and authentication processes among all trading partners. The solution, which is hosted on IBM’s cloud platform, Bluemix, was led and delivered by IBM
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Source: CTRM Center