A partnership of three companies in India has launched a blockchain-based financing platform that aims to curb trade-based financial crime.
The companies, RXIL, ATReDS, and MYND Solutions, say the new platform will help detect fraudulent double financing of invoices.
The three companies, each of which is licensed to work on the Reserve Bank of India- (RBI-) sponsored Trade Receivable e-Discounting System (TReDS), operate a digital platform that allows small- and medium-sized enterprises (SMEs) to auction their trade receivables from corporate customers.
Users of the platform which is aimed at private companies can exchange information on invoices uploaded with the aim of determining that invoices are not financed several times.
Companies can upload an invoice to any or all of the three exchanges on TReDS, after which financiers lodge a bid to fund the invoice, but only one bid can be successful.
The RBI launched TReDs in 2017 with the aim of providing SMEs with a wider range of financing options.
The system links banks and factoring houses with SMEs that upload their invoices to the platform.
Categories: Trade Based Financial crimes News