Louis Dreyfus Company, ING, Societe Generale and ABN Amro complete the first agricultural commodity trade through blockchain
For the first time ever in the agricultural commodities sector, this trade included a full set of digitalised documents (sales contract, letter of credit, certificates) and automatic data-matching, thus avoiding task duplication and manual checks. The transaction, which mirrored the paper-based process, demonstrated significant efficiency improvements for all participants in the chain. Time spent on processing documents and data has been reduced fivefold. Other benefits include the ability to monitor the operation's progress in real time, data verification, reduced risk of fraud, and a shorter cash cycle. The platform’s success demonstrates the immense potential of distributed ledger technologies to advance commodity trading and financing.
Illustration Photo: Soybeans (credits: Dan Lemke, Minnesota Soybean Research and Promotion Council / Flickr Creative Commons Attribution 2.0 Generic (CC BY 2.0))