Digital Assets: Russian Blockchain-based Trade Finance Platform Factorin Clocks $500M Turnover
Factorin’s Distributed Ledger Technology takes the drudge out of trade documentation and finance for SMBs.
In its first year, Factorin, a Russian blockchain-based trade finance platform has processed 246,000 invoices and supplies and chalked up a transaction turnover above $ 500 million. 30 banking organizations and factoring companies are already on-board the platform. Further, numerous small and medium-size businesses are grateful customers. (AIthority)
Distributed Ledger Technology, or blockchain
Factorin’s DLT, or blockchain technology, has completely reinvented the trade finance market in Russia. It automates the interaction of the accounting systems of customers, suppliers, and factors. It also processes payments to suppliers within two hours after delivery. Small and medium businesses used to receive payments with the delay of as much as 1-2 weeks.
Further, it removes all manual work in the preparation, verification, and approval of trade documentation. However, it provides a high level of security and confidentiality and minimizes the risks associated with human errors and fraud.
Blockchain-based processing of trade finance and commodity transactions is recommended as a possible solution to the high incidence of fraud by commodity trading companies, particularly in Singapore and China.
As of now, “the physical commodity market lacks a digital confirmation facility where the pricing, payment and delivery terms booked by the buyer and the seller can be reconciled — automatically and in real-time,” says Etienne Amic in an FT opinion piece.
Andrey Macklin founded Factorin in 2018 and was supported by venture finance company Digital Horizon. It went live in June 2019.
Says Andrey Macklin, co-founder “Factorin is one of the largest B2B blockchain platforms in Europe. With 49 mainnet nodes and above 100k transactions monthly, Factorin is one of the world’s leading blockchain-powered B2B trade finance platforms. We are a licensed EDI operator, which makes it possible to digitize any type of customer contract and transaction. The platform provides customers with the widest range of trade finance tools including factoring, dynamic discounting, and more than 10 ready-made solutions.”
Related Story: China Merchants Aims To Be the First Blockchain-Powered Port in the World
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