HashKey Group and Velotrade Partner to Build Blockchain Platform
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.
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.
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.