A group of companies including IBM has spearheaded the development of a new blockchain-based crude oil trade finance platform.
Along with IBM, commodities trading group Trafigura and corporate investment bank Natixis took part in the creation of the platform, built using code from the Linux Foundation-led Hyperledger project. IBM’s BlueMix cloud hosting service is also being utilized.
Within the system, parties can view transaction data as it is published on the blockchain. The platform also hosts documentation and updates on shipments, deliveries and payments.
Natixis, a member of the R3 distributed ledger consortium, is no stranger to trade finance applications of blockchain, having joined with the "Digital Trade Chain" project last year.
According to Arnaud Stevens, Natixis’ head of global energy and commodities in New York, the bank sees the tech as potentially bringing down costs while also boosting procedural transparency.
Stevens said in a statement:
Many of the world’s banks also continue to push ahead with related projects focused on the commodities trade.
Image via Shutterstock
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.