Marubeni set to become equal shareholder in trader led Swiss blockchain startup

An independent legal entity based in Geneva, Covantis was incorporated in March 2020.  Its digital platform​, launched in February this year, is leveraging technology to modernize cumbersome post-trade execution processes, initially with a focus on grains and oilseeds operations.

Subject to regulatory approvals and upon closing of the transaction, Marubeni is to acquire equal ownership and rights as the initial shareholders of Covantis: ADM, Bunge, Cargill, COFCO Corporation, Louis Dreyfus Company (LDC) and Viterra.

Petya Sechanova, CEO of Covantis, said with the Japanese company as part of the entity’s shareholders, the startup will be able to continue investing in new capabilities, expanding to new origin and destination markets, along with new commodities.

International bulk commodities trading, including grain and oilseed, requires complicated business workflows including preparing, exchanging, and confirming many physical documents like contracts or certificates between multiple parties throughout the supply chain from supplier to buyer, noted the Japanese company.

“The issue at stake is to improve efficiency, accuracy, and transparency in the industry. Marubeni brings a wealth of knowledge in supply chain management with a very strong base in procurement, distribution and storage in its home market Japan.

“Together we plan to further strengthen the value proposition to the market participants and enable end-to-end supply chain optimization from the initial supplier to end-buyer,” ​said Akira Terakawa, CEO, food, agriculture and chemicals Group, Marubeni.