Oil majors Chevron and Total as well as Indian refiner Reliance Industries, have joined and invested in the Vakt blockchain-based global commodities platform.

Vakt is designed to link with komgo, a blockchain-based commodity trade finance solution that enables traders to use digital letters of credit (L/Cs) instead of paper-based ones.

Strategy development

As a result of their investment, Chevron, Total and Reliance will become early users of Vakt's blockchain-enabled platform.

With their investment, the three new investors join the existing consortium participants and are expected to participate in Vakt's strategy development.

L/Cs linked in

Vakt and komgo are being designed to link so that oil traders can synchronise and use the two platforms' facilities, including komgo's digital L/Cs, together.

There are several common partners in the two initiatives. Vakt's original investors and first users include energy majors BP, Equinor and Shell; independent traders Gunvor, Koch Supply & Trading, and Mercuria; and banks ABN Amro, ING and Société Générale.

Komgo's founders include ABN Amro, BNP Paribas, Citi, Crédit Agricole Group, Gunvor, ING, Koch Supply and Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS and Société Générale.

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