Commodity trade finance blockchain platform Komgo and specialist trade finance fintech Mitech have announced a collaboration to provide straight through processing of letters of credit (L/Cs) and guarantees.

The collaboration will also allow users to create an immutable document to guard against fraud and falsification.

L/Cs and guarantees

Straight through processing of L/Cs and guarantees is achieved by two-way communication between Mitech's latest back-end trade finance solution, Credoc 5G, and Komgo's multi-bank portal, Konsole.

Corporate clients will be able to prepare and send their requests to issue L/Cs and guarantees in Konsole, which will channel these requests directly into Credoc 5G.

Fraud and falsification

An immutable document to guard against fraud and falsification will be created by the two firms by integrating Komgo's Trakk system with Mitech's Trac middle-office collateral management system.

Trakk is a blockchain system that allows users to create an immutable document to guard against fraud and falsification. Trac meanwhile will automatically verify the integrity of documents stamped in Komgo's system and display the result in Trac.

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