To transform the “commodity post-trade processing” using blockchain technology, industry giants have come together to launch the VAKT platform. The VAKT platform is the outcome of the efforts of the world’s premier commodity traders, energy traders, and banks. Moreover, energy trading heavyweights like Shell and British Petroleum (BP) are the first one to pledge their support to VAKT.
Also, other players from the physically traded BFOET crude oil business will leverage blockchain’s unique features of enhanced efficiency and security.
John Jimenez, Interim CEO of VAKT is quite optimistic about the launch. He said that despite being the initial stage, VAKT is already getting an overwhelming response from industry players.
“Launching into our first market with such high-caliber 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,” added Jimenez.
Developed Using JPMorgan’s Quorum Private Distributed Ledger
The enterprise-grade VAKT platform provides real-time and secure trading of energy commodities. Currently, the platform only supports trading of BFOET crude oil contracts.
Going ahead, it also plans to facilitate the trading of all physically-traded energy commodities. VAKT is currently developing the roadmap according to the industry needs and further plans for a full-fledged launch in January 2019.
The Creation of VAKT
VAKT created its blockchain-powered platform working with ThoughtWorks, a global software consultancy. Furthermore, the VAKT platform is developed using JPMorgan’s Quorum private distributed ledger.
The platform helps to eliminate the manual paper-based processes. It also manages complete physical transactions right from the trade entry to the last settlement.
BP, Shell, and other initial backers are currently running the VAKT platform in parallel to their internal systems.
“Digitization 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 improving speed and security, which benefits everyone along the supply chain from market participants to customers.”
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