In partnership with more than a dozen major global banks and trading firms, Koch Supply and Trading recently helped create a first-of-its-kind blockchain platform for financing the trading of commodities like oil and wheat.
It’s a move that’s in alignment with the company’s objective of finding new ways to improve the way it does business, with blockchain offering an opportunity to transform the way it approaches commodities trading.
As a type of distributed ledger technology, blockchain provides multiple benefits for commodities trading and uses secure encryption that reduces the risk for fraud while eliminating the need for third-party verification and speeding up transactions.
But it’s not the company’s first foray into blockchain – Koch has been exploring ways of applying distributed ledger technology to its businesses, including how it registers and tracks company patents and intellectual property.
Managed by komgo SA, a Geneva, Switzerland-based venture, this new platform will go live later in the year, with a focus on handling the trade of crude cargo before expanding to agriculture and metals in 2019.