Citigroup Raises its Equity Stake in Ethereum-based Trade Financing Startup Komgo
A multinational investment bank and financial services corporation Citigroup Inc. has increased its investment in Komgo, which is an Ethereum-based decentralized startup.
The global head of commodity trade finance at Citigroup, Kris van Broekhoven stated that the bank upped its capital in Komgo to provide the startup the possibility to keep developing.
The Ethereum-based trade financing platform was launched in 2018 in partnership with ConsenSys. It has an intention to simplify trade financing in the commodities markets. The platform provides equities traders, financial institutions as well as trade service providers the possibility to communicate across blockchain technology.
As Broekhoven noted, trade financing has highly depended on the exchange and manual processing of paper documents for around a century. He stated that distributed ledger technologies provide opportunity to modernize trade financing.
In addition, he mentioned: “Now blockchain technology serves as a catalyst to disrupt the industry towards the processing of electronic data.” Citi has also started to integrate its trade engine with Komgo’s blockchain.
At the present, the startup is focused on letters of credit, account receivables financing, and KYC. However, it is planning to expand its features to integrate inventory financing and auto-matching of electronic documents.