- Firm set to use “tokenized IOUs” on the public Ethereum blockchain as part of the new move, which is also expected to reduce the fees paid by business customers for international money transfer
- Tradeshift is part of Goldman Sachs, and compared its new B2B plans to Facebook’s Libra cryptocurrency
- “We are deliberately going slow and trying not to break things, which is how it should be in finance”, said spokesperson for firm’s partner
A financial technology company focused on supply chain management has announced that it will act to reduce its supplier-buyer transaction fees for cross border payments by using the blockchain.
Tradeshift said that it would join the public Ethereum blockchain as part of the move, which aims to use “tokenized IOUs” or flow tokens to bring down the costs of international money transfer for supply chains.
Tradeshift has been in business for four years and is part of the international financial services organisation Goldman Sachs.
In a press release, the firm appeared to compare its plans with those of the beleaguered proposed Facebook cryptocurrency Libra – although it did emphasise that it would be carrying out its innovation plans from a business to business perspective rather than a consumer one.
The firm’s new tokens “can do for supply chain management and trade finance what Libra has been attempting to do at a consumer level with wallets and stablecoins”, the firm said.
The firm works alongside Monerium, a firm which is an e-money license holder.
Its e-money services are now ready to be used in a range of European economies thanks to a process of regulatory approval.
These economies include Denmark, Germany, Iceland and Sweden.
France, the UK and Lithuania are also on the list.
According to Monerium’s Co-founder and CEO Sveinn Valfells, the partnership is “going slow” on purpose.
“We are deliberately going slow and trying not to break things, which is how it should be in finance”, he said.
On Tradeshift’s part, Gert Sylvester – who is the firm’s co-founder of Tradeshift and general manager – emphasised the “smart contract” aspect of the new service.
“We have taken an accepted invoice and tokenized it on Ethereum. On the due day, a smart contract automatically swaps the tokenized invoice for the eMoney that is on-chain”, he said.
According to its website, Tradeshift’s goal is to open up “commerce for all”.
“We envision a future where business commerce is a level playing field for all businesses, of all sizes, everywhere in the world”, it says.
“It’s what drives our innovation, determination, and passion. At Tradeshift Frontiers - our innovation and incubation lab we bring inspiration to new ideas. Ideas we want to share.”
It works alongside a number of high profile organisations, including Siemens, the British NHS and HSBC.