Effortlessly Manage Trade Finance with Blockchain-based Solutions
Corporate send payment instructions to banks for cross-border payments based on documents such as advance letters of credit, bills of lading, invoices, delivery challan, and so on. Currently, banks receive the documents via email and physical copies are sent by courier through the banking channels.
There are some limitations of the current process –
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- No mechanism to ensure the privacy of data in motion and data at rest.
- Documents are shared via email, making it difficult to track over time.
- Limited counterparty visibility.
Our blockchain-based platform enables information symmetry, transparency, trust, security, and immutability based on our understanding of the business requirements.
- A unified version of the truth is securely replicated across all stakeholders.
- Automation of the entire process eliminates manual intervention, resulting in a shorter lead time.
- Documents move quickly, and transactions are settled in near real-time.
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Pain points in existing process
As a new way to secure the transfer of value, blockchain technology promises to increase collaboration, automation, and oversight in trade finance transactions.
Easy availability and robustness of financing mechanisms
Blockchain based trade finance solution
The hyperledger fabric blockchain framework serves as the foundation for the solution. The platform we created and implemented encourages participation from banks and corporates through the SWIFT channel.
LCs and remittances are a paper-intensive and time-consuming process. Through smart contract execution, our platform automates the process and speeds up the transfer of value.
The decentralized (tamper-proof) shared data layer allows for near real-time (no delay) synchronization, and each entity is not required to rely on a central authority. The system guarantees product visibility throughout the supply chain, from origin to destination.
The system assures product visibility throughout the supply chain, from origin to destination.
Moreover, each transaction would have an audit trail, frequently a regulatory requirement in financial domains.
The primary goal is to develop a universal platform for all banks rather than individual/disjointed interfaces.
Compared to conventional methodologies, our blockchain-based solution has many advantages
Trade Finance Solution using Blockchain for Corporates
The solution is built on top of hyper ledger fabric blockchain framework. The entire transaction process from corporate to bank and return response from bank to corporate is automated.