The Maritime Port Authority of Singapore (MPA) has recently enlisted VAKT, a leading blockchain post-trade firm, to spearhead the development of an electronic bill of lading (eBL) for the global waterborne oil market. Consortium members include major players such as BP, Mercuria, and ING. VAKT aims to digitize bills of lading, potentially saving billions in the oil trade. This initiative aligns with Singapore’s forward-thinking approach in tokenizing bills of lading through open protocols like TradeTrust.
TACKLING INEFFICIENCIES OF MANUAL PROCESSES
VAKT‘s significance in the oil trade extends to addressing the inefficiencies of manual processes, with the launch of an electronic trade confirmation solution. Notably, physical oil trade contracts currently rely on paper or PDF versions, leading to a 15% error rate. VAKT‘s solution, backed by oil majors and traders like BP, Chevron, and Gunvor, introduces smart contracts, reducing errors to half a percent. This paves the way for future tokenization of oil contracts, attracting investments from benchmark pricing firms Argus Media and S&P Global.
The blockchain post-trade solution for the oil sector continues to attract investments, with Argus Media and S&P Global joining its roster of heavyweight shareholders. VAKT‘s role in digitalizing the sector and ensuring cryptographically verifiable data has positioned it as a key player. The platform has experienced substantial growth, with transaction and nomination volumes increasing significantly.
KEY SUPPORT FROM DELOITTE
Deloitte has played a pivotal role in supporting VAKT‘s journey, providing expertise across various domains and ensuring the success of the enterprise blockchain platform. VAKT‘s live operation since November 2018 marks a transformative shift in energy transactions, offering a secure, standardized, and efficient way to transact. Deloitte’s collaborative approach and expertise have contributed to the company’s success, showcasing the potential of large-scale consortium ventures in driving breakthrough innovation.
Thoughtworks, a key partner in VAKT‘s mission, leveraged blockchain technology to build a digital platform, revolutionizing the global commodities trading industry. The platform allows all parties to manage the post-trade process efficiently, eliminating time-consuming and error-prone manual systems. Thoughtworks’ collaborative approach and technical excellence were instrumental in VAKT‘s success, with the platform’s launch in the North Sea crude oil market marking a significant milestone.
VAKT‘s journey, supported by strategic partnerships, investments, and collaborative efforts, exemplifies the transformative power of blockchain in revolutionizing commodities trading. As VAKT continues to expand its presence, the industry is witnessing a shift towards more secure, transparent, and efficient trading practices.