Vakt to accelerate RIL digitization
Reliance Industries Ltd has invested US$5 million in a London-based start-up Vakt Holdings Ltd as part of its accelerated digitalization process along with global business groups.
RIL has acquired 5.56% equity stake in VHL, which aims to digitize the global commodities trading industry powered by blockchain.
“The strategic investment accelerates Reliance’s digital journey, through active participation in an emerging and evolving, yet promising, blockchain enabled technology solutions for energy markets,” said RIL in a statement on 22 Dec 2018.
Reliance started the process of investment in VHL in July 2018. Vakt shareholders include BP, Shell and Equinor, ABN AMRO, Koch, ING, Mercuria and Societe Generale.
Separately, VHL is executing a BP, Shell and Equinor-backed project to modernize physical energy post-trade processes using blockchain technology.
The platform aims to help companies move away from traditional and cumbersome paper-based trading contracts and operations documentation to digital smart contracts. This would cut costs, reduce the risk of errors and make back-end trading operations more reliable and efficient.
It will cover the North Sea oil market.
“In 2019, we will look at ARA barges, waterborne markets and US crude pipelines. And by January we expect the first licensees will come on board, in addition to our shareholders,” said Vakt product development vice president Lyon Hardgrave. fiinews.com
