ABCDs Officially Launch Blockchain Initiative Covantis
Global agribusinesses ADM, Bunge, Cargill, and Louis Dreyfus, often referred to as the ABCDs of global commodity trading, have officially launched Covantis - a project to replace existing post-trade processes with blockchain, AI, and other data-driven solutions.
The project was announced by the four traders last year, with COFCO and Glencore joining the consortium later on.
Existing post-trade systems are admittedly manual, time-consuming, and repetitive, but through the adoption and integration of blockchain and other related technologies, the partners are aiming to increase transaction speeds by as much as 70 percent; reduce error rates by 80 percent; and reduce the rate of re-keying data by 90 percent.
With initial target sectors of grains and oilseeds, Covantis will be operational after the turn of the year with a pilot focusing on bulk transport of soybeans from Brazil to China. And eventually, the partners are looking to digitize the execution process for international bulk commodities from contract to vessel finalization, reducing the entire process time by 7-10 days.