Two major European banks have released the initial results of a blockchain prototype focused on oil trading.
The project, called Easy TradING Connect, was unveiled last month as part of a broader blockchain proof-of-concept push by Dutch financial services company ING, and was developed collaboratively with French banking group Société Générale.
The platform was later used to conduct a live oil trade with commodities trading firm Mercuria.
According to the firms involved, the prototype results in a reduction in the time and cost required to process a commodities trade. Specifically, they said that the amount of time it would take a bank to process its end of a trade was reduced from three hours to less than half an hour.
Alistair Cross, Mercuria’s global head of operations, commented on the trial in a statement, saying:
While the test marks Mercuria’s first publicly acknowledged work with blockchain, the company’s chief executive Marco Dunand has previously remarked that the tech could result in a significant reduction in operational costs – a statement that seems to have been confirmed by the trial results.
Both ING and Société Générale have explored various blockchain concepts in the past.
Oil barrel image via Shutterstock
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