ABN Amro is looking to launch a blockchain platform for the commodities industry that uses the Internet of Things to communicate directly with physical trade inventories.
The Dutch bank has been working with Accenture over the last year to develop the platform, dubbed Forecefield, as a standalone product.
The platform communicates with inventories through the Internet of Things, sensors and NFC chips, monitoring the goods - which are often collateral for loans. This, says ABN Amro, leads to more secure physical handling processes and a reduction of costs.
Forcefield is now an independent company that ABN Amro hopes will operate as a market utility, initially focused on refined metals.
Anglo American, CMST International, Hartree Partners, ING Bank, Macquarie, Mercuria and OCBC Bank are among the commodity industry players and banks to have signed an MoU to back the project.
Karin Kersten, MD, trade and commodity finance, ABN Amro, says: "This will strengthen the entire commodity trading supply chain. Parties involved will benefit from more effective controls, greater efficiency, transparency and traceability."