Share this article
Shell, BP Back Blockchain Platform to Modernize Commodities Trading
Oil giants Shell and BP are among a group of firms planning to launch a blockchain platform to automate post-trade processes in the energy industry.
Updated Dec 10, 2022, 9:17 p.m. Published Nov 13, 2018, 12:30 p.m.
Make us preferred on Google
Oil industry giants Shell and BP are among a group of firms planning to launch a blockchain platform to automate post-trade processes in the energy industry by the end of 2018.
VAKT Global, the consortium building the platform, revealed the news at a digital commodities summit hosted by S&P Global Platts on Monday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The effort effectively intends to help oil companies replace paper-based documentation with smart contracts – a move expected to cut costs, reduce the risk of errors and make post-trade processes more efficient. The platform will comprise a "secure, real-time blockchain-based platform to manage physical energy transactions," according to the group.
"We expect to go live at the end of November in the North Sea oil market. In 2019 we will look at ARA barges, waterborne markets and US crude pipelines,” said Lyon Hardgrave, VAKT Global’s vice president of product development.
The first licensees are expected to be on board by January, Hardgrave added.
VAKT Global saidhttps://www.vakt.com/press-detail/november-2017-commodity-traders-energy-majors-and-banks-join-forces-to-create-a-blockchain-based-digital-platform-for-the-energy-commodity-trading-industry earlier this week that the blockchain platform would be run as a new venture by the consortium members, to be managed and operated as an independent entity. Regulatory approvals for the venture are pending, it added.
Apart from Shell and BP, other members of the group include Norwegian energy company Statoil, trading houses such as Gunvor, Koch Supply & Trading and Mercuria, and banks including ABN Amro, ING and Societe Generale.
Licensees that join the blockchain platform on a fee basis can expect to save around 40 percent in post-trade resolution, Hardgrave said.
He added:
"This not a trading platform, nor a settlement platform – there is no cryptocurrency involved. But it is everything in between: deal recap; confirmation; contract; logistics (the really big element in all this) – and invoicing.”
Oil pumps image via Shutterstock
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Binance to shift $1 billion user protection fund into bitcoin amid market rout
Binance will convert the stablecoin holdings in its $1 billion Secure Asset Fund for Users to bitcoin over the next 30 days, with plans for regular audits.
What to know:
- Binance will convert the stablecoin holdings in its $1 billion Secure Asset Fund for Users to bitcoin over the next 30 days, with plans for regular audits.
- The exchange has pledged to replenish the fund to $1 billion if bitcoin price swings cause its value to fall below $800 million.
- Binance framed the change as part of its long-term industry-building efforts.
Top Stories
