Santander Corporate & Investment Banking (Santander CIB), has become a shareholder in Komgo, which offers an increasing range of digital trade finance solutions, including letters of credit (L/Cs), account receivables financing, and know-your-customer processing.

The bank says its partnership with the fintech aims to accelerate the digital transformation of several trade and working capital products, and help large multinationals boost digitalisation.

L/C position

Santander CIB says it has become a shareholder of Komgo with what it describes as a strategic equity investment. Financial details have not been disclosed.

Komgo significantly strengthened its market position in the digital L/C market when it acquired Global Trade Corporation (GTC) last year (DC World News, 2 December 2022).

GTC provided several L/C solutions amongst its range of digital multi-bank trade finance solutions for corporates.

Blockchain L/C

Approximately US$1 billion in transaction value flows through the Komgo network each day.

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.

In 2020, 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.