More Efficiencies Gained by Leveraging Blockchain's Unique Data Structure
HashKey has partnered with Velotrade to build another real blockchain use case in trade finance
HONG KONG, Dec. 3, 2019 /PRNewswire/ -- In order to add trust, efficiency and speed to its trade finance platform which directly connects SMEs and professional investors, Velotrade Management Limited ("Velotrade") is collaborating with HashKey Digital Asset Group Limited ("HashKey") on implementing a blockchain-based platform. This cross-border project involving multiple countries will leverage the success that HashKey has previously enjoyed for projects in China across industries such as automotive and supply chain.
Pain point of today's Trade Finance processes before Blockchain
Despite the fact that traditional trade finance is a long-established industry, when firms are expanding rapidly, inefficiencies in management arise and it becomes difficult to keep track of all the parties involved. The processes of trade finance are out-dated. They require manually creating and reviewing contracts, documents and regulatory requirements.
This results in delayed transactions and, ultimately, a poor customer experience. Double financing could be a recurring issue due to the inability to effectively verify document authenticity or track the flow of transactions. Miscommunication issues are common as the current trade finance structure involves multiple un-integrated platforms.
All these pain points contribute to management inefficiency and lead to a higher risk of fraudulent activities. Now with the growing popularity of blockchain, companies are turning to the promising solutions this new technology has to offer.
Advantages of HashKey and Velotrade renovating trade finance combining blockchain expertise and the industry's leading platform
HashKey and Velotrade have re-imagined how trade finance can operate by leveraging a blockchain infrastructure to drive efficiency, reduce costs and open up new revenue opportunities including newer models of credit and funding guarantees backing the trade.
Value is brought to trade finance by significantly improving efficiency. Real time review of documents reduces the time customers take to initiate transactions. In addition, the ability to create and execute smart contracts allows easy data and transactional maintenance for clients, as once contracts are made and met, their status is updated in real time.
HashKey's blockchain provides cryptographic security, consensus and a distributed ledger database. This solution provides data with immutability, credibility and transparency, enabling proof of ownership of transactions, elimination of double spending risk, and real- time document review in line with regulatory standards. It also enhances financial privacy for users on the Velotrade platform. More importantly, it will make the process more efficient and will dramatically accelerate transactions inherent in trade finance.
Utilizing blockchain technology, Velotrade reduces intermediary costs and offers increased transaction speed to provide a convenient way to arrange immediate short-term finance, which enables businesses to gain quick access to liquidity. Financial advances arranged through Velotrade are distributed to users within a few hours, unlike traditional institutions which can take weeks.
Headquartered in Hong Kong and regulated by the Securities and Futures Commission (SFC), Velotrade is an Internet-based platform for businesses of all sizes to finance their cash flow needs using their trade invoices. Velotrade provides leading financial institutions with access to new investment opportunities in the alternative asset class of Account Receivables Financing.
Official Website: https://www.velotrade.com/global/
HashKey Digital Asset Group Limited (HashKey Group) is a leading FinTech group and a blockchain research institution based in Hong Kong. With the mission of advancing the entire industry forward, HashKey Group devotes itself to accelerating innovation, promoting entrepreneurship, and contributing to the blockchain technology development.
Official Website: https://www.hashkey.com/