Global banking giant Citi has increased its equity stake in Komgo, the trade finance platform that is currently focused on letters of credit (L/Cs), account receivables financing, and know-your-customer (KYC) processing.

Komgo, which aims to digitise trade finance operations using blockchain to improve efficiency, now says it wants to broaden its focus to cover other trade finance offerings.

Development plans

Global head of commodity trade finance at Citigroup, Kris van Broekhoven, said the bank had increased its investment in in Komgo so the company can continue its development.

Komgo is set to expand its range of offerings beyond L/Cs, accounts receivable and KYC processing to include inventory financing and auto-matching of electronic documents.

Citi has also begun integrating its trade engine with Komgo's blockchain.

Komgo involvement

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

Earlier this year Japan's MUFG Bank said it had completed its first live blockchain L/C transaction on the Komgo commodity trade finance platform (DC World News, 12 February 2020).

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