VAKT on guard for commodities on blockchain
VAKT says it is now creating a production blockchain platform
VAKT has launched its post-trade processing platform for commodities on the blockchain – and its alliance with Deloitte and software company ThoughtWorks.
Moving beyond the proof of concept stage, VAKT says it is now creating a production blockchain platform to digitise the commodities trading industry.
By managing physical energy transactions on a distributed ledger, VAKT aims to create an ecosystem for counterparty interaction, with “anticipated gains in cybersecurity, operational efficiency and trade finance”.
John Jimenez from BP has been appointed as VAKT’s interim CEO.
Jimenez says: “Distributed ledger technology affords us the opportunity to completely transform the way counterparties and other actors in the supply chain interact. However, for blockchain to succeed, a technical solution alone is not sufficient; it requires a substantial network of users.”
The platform will focus on creating a “single source of truth” (a common expression) for the trade lifecycle, eliminating reconciliation and paper-based processes.
The first production version of this platform is currently under development and is expected to be operational by year end.
The platform will be sequentially introduced in three markets – North Sea crude oil, US crude oil pipelines and Northern Europe refined product barges – with additional markets to be added in 2019.
Deloitte will assist with “ecosystem engagement” and ThoughtWorks has been appointed as the technology partner.
VAKT was created and launched as an independent firm in December 2017. Its office is in Canary Wharf, London.
Companies from energy majors BP, Equinor and Shell; independent traders Gunvor, Koch Supply & Trading and Mercuria; and banks ABN Amro, ING and Société Générale each contributed capital with the purpose of developing an industry-wide solution in post-trade processing for commodities.
As you may know, VAKT is a Scandinavian word for guard.
