Blockchain technology proved its worth recently in a wheat shipment deal from North America to Indonesia worth $12 million. The U.S.-based Cargill Incorporated and the Singaporean international trading company, Agrocorp, completed the trade using the dltledgers blockchain platform.
Cargill Incorporated is an American privately held global corporation, whereas Agrocorp is a large International trade firm serving markets with globally sourced commodities. Both entities recently utilized the dltledgers blockchain platform to execute their first cross-continent commodity trade for $12 million worth of wheat.
By using distributed ledger technology (DLT), they settled the deal in five days – on April 1st. This is a significant improvement than traditional trading processes, which can take up to a month.
Per the report, the Dutch multinational banking and financial service company – Rabobank – financed the deal between the two agri-commodity traders. “Consensus-driven smart contracts in this deal minimized our time spent on processing documents by more than half,” said two key facilitators from the bank – Mario Cortinhal in North America and Olivier De Jong in Singapore.
Samir Neji, CEO of dltledgers, believes that similar trades can push his company’s technology to receive further adoption:
“Working with Cargill, Agrocorp, and Rabobank to facilitate this deal on our platform has proven our blockchain solution’s ability to go mainstream. We also see increasing adoption of our blockchain technology.”
The company’s blockchain solution is built on the open-source Hyperledger Fabric platform. So far, it has facilitated live trade finance transactions worth approximately $2 billion. Those involved 400 global traders and over 40 banking partners.
“What’s interesting here is that each transaction can include multiple unconnected counterparties, represent tens of millions of dollars, and involve the registration of hundreds of different data points into the platform.” – said executive director of Hyperledger Consortium, Brian Behlendorf.
Another similar trade occurred on the dltledgers blockchain platform last year. The British multinational banking and financial service company, Standard Chartered and global food manufacturer IFFCO Singapore completed their cross-border commercial deal.
It involved palm oil and its extracts. The full execution process took three hours rather than the typical 10-day procedure. By employing DLT, both entities also reduced the financial costs by 20-25%.