VAKT, first ever blockchain based energy trading system, started open operations this same January.
The platform manages physical energy transactions from trade entry to final settlement, eliminating reconciliation and paper-based processes.
BP, Equinor, Shell, Gunvor and Mercuria had already launched privately as VAKT’s first users, running in parallel with their internal systems.
Other backers include Koch Supply & Trading, ABN Amro, ING and Societe Generale.
VAKT is an independent company created and backed by some of the world’s premiere energy majors, commodity traders and banks.
John Jimenez, Interim CEO, comments: “We’ve been overwhelmed by the strength of response to the VAKT concept. Launching into our first market with such high-calibre first users is a transformational moment for us and the industry. But it’s just the start: success for a blockchain solution depends on widespread adoption and we’re looking forward to seeing the ecosystem grow.”
VAKT has created a secure, real-time blockchain-based digital platform, working with global software consultancy ThoughtWorks and underpinned by JPMorgan’s Quorum private distributed ledger.
The initial launch in January is limited to trade specifically in BFOET crude oil contracts, but the plan is extending the platform to all physically traded energy commodities.
The company is building its roadmap in response to industry needs but US crude oil pipelines and Northern Europe refined product barges are schedulled for launch in early 2019.
“Digitalisation is changing how the energy value chain works. It’s an exciting time,” said Andrew Smith, EVP Trading & Supply, Shell International Trading and Shipping Company Limited.
“Collaboration with our peers and some of the industry’s key players is the best way to combine market expertise and achieve the scale necessary to launch a digital transaction platform that could transform the way we all do business. Ultimately the aim is improved speed and security, which benefits everyone along the supply chain from market participants to customers.”
Image over the headline.- © VAKT.
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