Blockchain makes first agricultural commodity trade
Written by Mark Evans
Louis Dreyfus Company, ING, Societe Generale and ABN Amro have completed the first agricultural commodity trade using blockchain.
The soybean trade included a full set of digitalised documents (sales contract, letter of credit, certificates) and automatic data-matching, thus avoiding task duplication and manual checks. The enhanced Easy Trading Connect (ETC) blockchain prototype has been estimated to have reduced the time spent on processing documents and data fivefold.
The ETC platform was was first validated with an oil cargo transaction in February 2017, with the subsequent launch in November 2017 of an energy consortium aiming to offer ‘blockchain-based’ services to the energy sector. The same principle was then applied to develop a blockchain-based platform tailored to agricultural commodities trading, in collaboration with the various participants in such transactions.
"One thing is clear: the digital revolution is transforming the commodities sector,” said Gonzalo Ramírez Martiarena, chief executive officer of Louis Dreyfus Company. “Distributed ledger technologies have been evolving rapidly, bringing more efficiency and security to our transactions, and immense expected benefits for our customers and everyone along the supply chain as a result. The next step is to harness the potential for further development through the adoption of common standards, and welcome a truly new era of digital trade flow management on a global level."