American food and agricultural giant Cargill teamed up with Singapore-based agri-commodity trader Argocrop International and Dutch financial services company Rabobank to complete a $12 million intercontinental agricultural trade transaction using blockchain technology.
The transaction between the global agriculture supply chain partners took place in five days amid the ongoing global coronavirus (COVID-19) pandemic outbreak. Traditional trading processes can take up to a month.
Other partners included Rabobank North America, ship owner Amarante and shipping agent Transmarine.
The partners used Singapore-based blockchain platform called dltledgers to execute the transaction involving the shipment of wheat sourced from North America and sold to a customer in Indonesia. The dltledgers blockchain solution is built on the open-source Hyperledger Fabric platform.
The shipment was settled on April 1, 2020 with six trading partners participating on a common blockchain platform, which provides a repeatable framework for end-to-end digital trade executions, digitalizing documents and trade execution process.
The platform created a shared, immutable record of the transaction with a single source of truth for all parties. Consensus-driven smart contracts in this deal also minimized the time spent on processing documents by more than half.
Cross-border commodity trading is one of the most promising sectors for blockchain, which allows for real-time monitoring by multiple parties, dispenses with concerns about data ownership, and simplifies the exchange of documents in a digital, secure and decentralized manner.
Each of these transactions can include multiple unconnected counterparties, representing tens of millions of dollars, and involving the registration of hundreds of different data points into the platform.
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