Japan's MUFG Bank has completed its first live blockchain letter of credit (L/C) transaction on the komgo commodity trade finance platform.

MUFG executed the L/C in London for commodity trader Mercuria.

Platform capabilities

The komgo platform offers trade finance products such as L/Cs, standby L/Cs and receivables discounting.

Additionally, it has a know your customer (KYC) compliance solution, which standardises the KYC process without using a central database.

Development team

komgo is based on JP Morgan's Quorum blockchain, the enterprise version of Ethereum, which aims to digitise trade finance operations to improve efficiency.

The platform'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.

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