Canadian blockchain startup MineHub and London trade finance firm Kimura announced they will form a joint venture to create a solution for syndicate financing of commodity supply chains. One of the project’s goals is for the syndicate to verify the ESG credentials of the commodities supplied, enabling the investment to be classified as sustainable. MineHub previously processed trades with the likes of BHP and Baosteel and has a relationship with ING, a former employer of its founding CEO. It first partnered with Kimura in 2019.
Syndicate financing involves multiple financiers providing joint funding for the commodities transaction. Inevitably many transactions get amended along the way, which becomes messy when multiple financiers are involved. Digitizing the process by using blockchain should help.
MineHub was founded to reduce paperwork in mining supply chains enabling digital transactions and supply chain traceability. ESG tracking is particularly important in mining, as it allows companies to be transparent about their processes, emissions, and other environmental impacts. Late last year, MineHub launched its ESG solution, which digitally captures ESG certifications and credentials, allowing the data to be included in all transactions whether that’s a sale, purchase or funding.
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