Swiss Metal Trader Made a US$500,000 Blockchain Transaction on the Swiss Trust Chainby Fintechnews Switzerland November 13, 2020
FQX, a Swiss provider of infrastructure for the issuance and transfer of electronic negotiable instruments, announced another set of successful transactions via its eNoteTM, an electronic promissory note using blockchain.
The eNotes with a total value of more than USD 500,000 were used by a Swiss commodity trader to finance a transatlantic metal shipment. The transaction was facilitated using sensor and tracking devices by the Swiss supply chain management service provider ARVIEM.
Arviem’s technology provided real-time information to all parties involved in the transaction on the location of the goods also reporting on door openings, intrusions, temperature, container damage and shocks.
Each eNoteTM is stored and recorded on the Swiss Trust Chain, a banking-grade DLT-system maintained by Swisscom and the Swiss Post. The integrated qualified electronic signatures used to securely issue and transfer the eNotes on the FQX platform are provided by Swisscom Trust Services.
Complex traditional financing processes often hinder companies in their growth. These barriers contribute to a global trade finance gap of over $2 trillion for which electronic promissory notes offer a remedy.
Promissory notes are a widespread traditional financial instrument that enable companies and individuals to obtain finance on the basis of an unconditional promise to pay.
In electronic form, as eNotes, they offer flexibility and efficiency in trade and corporate finance. By storing the eNoteTM on the Swiss Trust Chain of Swisscom and Swiss Post, transactions are fully digital and fraud risk is minimised. Liquidity flows directly to the companies that need financing without the need to involve other intermediaries.
“Electronic promissory notes make liquidity available where it is needed for businesses, while also offering attractive investment opportunities for financial institutions. Each eNote issued via FQX is assigned an ISIN number, making it easily transferable to other investors,”
says Frank Wendt, FQX Chief Executive Officer.
Roland Cortivo, Head of DLT Infrastructure at Swisscom, comments:
“Innovation and trust are at the heart of Swisscom. We are proud to support FQX with our leading electronic signature and DLT infrastructure to support the issuance and transfer of an eNoteTM. This transatlantic trade finance transaction proves why blockchain technology is the key to fully digital business processes.”
Featured image credit: Edited from Pexels