Binkabi Commodity Monday #4 | View online in your own language

Blockchain-based commodity trade ecosystem continues to expand

Commodity Monday, 1 October

HSBC, ING and other global banks reveal roadmap for Voltron blockchain platform

kongo, valk, Tradelens are just some of the consortiums who recently announced the use of blockchain technology in various trade financing, logitics and trade digitisation processes. The enthusiam for blockchain among large banks, commodity houses, shipping lines, inspection companies has seem unabated with last week’s announcement of the Voltron, a platform for tokenizing letter of credit:

NatWest, one of the banks involved, said the industry is now seeing what is “probably the first development in letters of credit for 250 years”.

But just like there are overlapping of shareholders and objectives in komgo and valk, the same thing happened between Volton and Marco Polo, which focuses on open account trade finance solution. In the spirit of blockchain technology, we will see commodity trading ecosystem continued to be expanded rather than one entity taking a monopoly position.


75 banks have joined JP Morgan's blockchain payments 'party'

75 lenders are joining to test the Interbank Information Network (IIN). JPMorgan built the information sharing programme on its own proprietary blockchain platform, Quorom, and has been testing it with a handful of lenders since October 2017.

IIN is a shared ledger for cross-border payments that allows banks to quickly and easily add or correct information necessary for payments sent between banks. It competes with legacy platforms such as SWIFT and new startups like Ripple.

Blockchain is 'not ready yet' to fully support the global supply chain, CEO says

Blockchain technology is not yet mature enough to fully support the global supply chain, according to Christian Lanng, CEO and co-founder of Tradeshift, digital invoicing start-up.

Companies need technologies that can digitize their supply chains from end-to-end so that they can respond quickly to changes, he said.

Blockchain is one such technology that experts say could have the potential to shake up the global supply chain.

UN Food Program to Expand Blockchain Testing to African Supply Chain

The United Nations World Food Programme (WFP) is expanding its blockchain testing from refugee aid in the Middle East to supply chain management in Africa.

Following the agency’s well-publicized pilot of an ethereum-based system for cash transfers in Jordanian refugee camps — a project known as Building Blocks — it now plans to test blockchain for the tracking of food delivery in East Africa, Robert Opp, the WFP’s director of innovation and change, told CoinDesk.

Specifically, the new project will monitor the movement of food from Djibouti’s port, where the WFP receives shipments, to Ethiopia, where much of its food operations are located.

Blockchain could improve transparency in Africa's commodity market 

A Chinese billionaire says deploying new technologies might be the solution that could help African nations trade their minerals and natural resources more efficiently and profitably. Bruno Wu, chairman and co-CEO of technology company Ideanomics (formerly Seven Stars Cloud Group), says blockchain and artificial intelligence could create efficient systems that would help in pricing, selling, and ensuring accountability. Digitizing asset production and distribution would also allow for an opportunity to leapfrog, he adds, allowing the continent to lead just as it has with mobile money worldwide.