Japan's MUFG Bank has completed its first complete transaction using Trakk, a blockchain system that builds document audit trails to guard against fraud and falsification.

Developed by blockchain trade finance specialist Komgo, Trakk allows users to stamp, trace and authenticate digital documents.

Audit trail

Komgo's new tool ensures that any action that is registered on a document is linked to both the company and the individual authorised to perform the action, building a unique and immutable audit trail behind digital documents.

MUFG says it used this technology to facilitate a transaction in which commodity trader Mercuria Energy Trading purchased crude oil from Gunvor Group.

L/Cs included

The transaction included a sales contract, L/Cs, and purchase documents housed and authenticated in the Trakk blockchain system.

Geneva-based KomGo SA was formed in 2018 by MUFG and 14 other global institutions, including banks, commodities traders, energy majors, and a certification company.

Additional solutions

The Komgo platform now provides conventional and standby L/Cs as well as receivables discounting. Additionally, it has a Know Your Customer (KYC) compliance solution, which standardises the KYC process without using a central database.

MUFG's first digital L/C transaction was executed in London on Komgo's platform for Mercuria Energy Trading in December 2019.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.