Saudi Aramco, state-controlled giant oil company, has invested in post-trade oil blockchain platform VAKT, according to a press release published today.
Aramco’s Energy Ventures (SAEV) subsidiary has bought shares worth $5 million in VAKT. The deal is aimed at financing the platform’s expansion, especially in the Asian market.
Accordingly, SAEV has joined VAKT’s 12 shareholders which are among the world’s largest oil and commodity trading companies.
The transaction will also allow Aramco Trading to use the VAKT platform.
Richard James, VAKT CFO, said:
“It is a proud moment to be able to count SAEV as one of our shareholders. This company – part of the most profitable business in the world – has a strong track record of investing in industry innovation. We were not proactively seeking further investors; however, we could not miss the chance to bring on-board a partner of this calibre, which is a tremendous show of faith in VAKT’s vision.”
The VAKT network processes transfers of physical energy from exchange entry to final settlement, eliminating paper documents.
Etienne Amic, VAKT CEO said:
“The North Sea is just the start for us. In a few short months, we have learnt a great deal from having the platform in production and iterating our product to make it better suited for global waterborne oil. We are now on a path to becoming the backbone of the post-trade processing of physical commodities.”
“We couldn’t ask for a better partner ahead of our future expansion than Saudi Aramco – especially when it comes to the company’s reach and expertise in Asia,” he added.
The blockchain-based platform provides buyers and sellers with a single source of truth that is safeguarded by an eternal, transparent audit trail.
Hans Middelthon, MD of SAEV Europe said:
“VAKT has demonstrated that their platform has the potential to digitise what is currently a very manual process and be truly transformative to end users and customers. Leveraging blockchain theory and applying it to the complicated world of post-trade processing, VAKT has made a compelling pitch to become an integral part of market infrastructure.”
He added that his company aims to develop blockchain technologies into Aramco’s business. “VAKT is an excellent candidate in this sense and we look forward to helping the company with its development,” he added.
Cryptolydian earlier reported that Venezuelan President Nicolas Maduro announced that the country will sell its production of oil and other minerals in exchange of its national cryptocurrency “Petro”.