In a recent demonstration of blockchain’s potential in traditional finance, InvoiceMate recently completed a pivotal pilot program.
The initiative showcased the seamless tokenization of an invoice using the XDC blockchain protocol, marking a significant milestone in blockchain-powered financing.
Utilizing TradeFinex‘s open-source smart contract standards, InvoiceMate facilitated a revolutionary transaction. Acting as the loan originator, InvoiceMate tokenized essential documentation, including an invoice, to secure funds for client H & H International LLC. The result: a streamlined process that generated a cash flow of $FXD 100,000 for a 60-day period.
This success highlighted the efficiency and innovation of blockchain-powered financing, underlining its potential in traditional financial structures. InvoiceMate achieved several crucial milestones, including the conversion of a paper-based invoice into an electronic format and the tokenization and fractionalization of this electronic invoice. Capital provisioning against the fractionalized electronic invoice was conducted using the FXD stablecoin.
Key participants in the pilot included InvoiceMate, H & H International LLC, Eclipton (an institutional digital asset custodian), and TradeFinex, known for reshaping the trade finance and private credit landscape through open-source smart contract standards.
The solutions employed in the pilot leveraged TradeFinex’s smart contract standards tailored for RWAs within private credit solutions, the XDC Network blockchain protocol, FXD stablecoin pegged to the USD and overcollateralized using the XDC token, and Eclipton’s institutional digital asset wallet facilitating stablecoin transactions.
Chen Shanlong, Marketing and Partnerships Lead of XDC Network and TradeFinex, highlighted the deployment of smart contracts powered by the XDC protocol to bridge the funding gap in trade finance. Shanlong stressed the intent to scale up Private Credit deal flow and establish standards in the RWA space using TradeFinex’s powerful smart contract standards.
The successful completion of this pilot signifies a significant stride in the partnership between TradeFinex and InvoiceMate, showcasing the potential of blockchain in revolutionizing invoice financing and paving the way for innovative financial solutions.
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