Vakt, a blockchain-powered oil trading platform based out of London has enrolled onshore companies responsible for two-thirds of all deals in the economically important waters of the North Sea, Financial Times reported on February 25, 2019.
Vakt to Take the Sea by Storm
Blockchain technology is making giant waves across all industries in the world. The latest development comes in the form of ambitious blockchain-project Vakt’s partnership with a number of firms responsible for the majority of trade in the North Sea.
(Source: Financial Times)
The venture named Vakt has the backing of several major global oil industry players and trading houses. The cutting-edge platform aims to digitize the paper-backed processing of physical commodity deals with the help of DLT and has plans to expand its global footprint in the future.
Speaking ahead of the International Petroleum Week, an annual oil industry gathering in London scheduled to begin from February 26, 2019, Etienne Amic, the CEO of Vakt, said the platform has inked a deal with four new clients ahead of the platform’s official launch at the event.
He noted that the platform needed “60 to 70 percent of the market” to have enough incentive for others to follow suit.
The platform, with the help of blockchain technology, will work towards eliminating the need for paper-based contracts, letters of credits, and invoices exchange via email, fax or post in the physical commodity trading sector.
“The younger people want to click, they don’t want to talk on the phone.”
Lowered Costs Welcome
The platform’s peripheral service providers such as the terminal or pipeline operators, port agents and inspection companies will play an instrumental role in moving the traded material along the supply chain. These service providers are looking to reduce costs associated by leveraging the emerging tech.
Substantiating on the importance of reducing costs in the commodity trading sector, Jean-Francois Lambert, a commodity consultant and former head of commodity trade finance at HSBC said:
“It’s become more and more difficult to make money by trading commodities and any means to lower costs and shorten the transaction times is welcome.”
BTCManager reported on December 2, 2018, how Vakt announced the launch of its commodity post-trade management platform. The platform was soon joined by oil and gas giants like Chevron, Total, and Reliance.