Chinese fintech company Ant Group, part of e-commerce giant Alibaba, launched an international trade and financial service platform powered by its blockchain-based technology solution AntChain to facilitate the cross-border sale of products and services by small and medium enterprises (SMEs) and to reduce costs for financial institutions serving these companies.
Based on the concept of “Trust Made Simple” and known as Trusple, the platform aims to make trading safer, more reliable and more efficient and to overcome problems, often due to a lack of trust between buyers and sellers, that can lead to delays in shipments and payment, as well as higher banking costs due to the need to verify order authenticity.
The automated process ensures information is tamper-proof, the company claims. Successful transactions on the platform also enable SMEs to build their creditworthiness on AntChain, making it easier to obtain financing services from banks, it added.
On Trusple, a “smart contract” is generated once a buyer and seller upload a trading platform. As the order is executed, that contract is automatically updated with key information, such as order placements, logistics, and tax refund options. By using AntChain, the buyer’s and seller’s banks will automatically process the payment settlements through the smart contract.
Trusple leverages off key AntChain technologies such as artificial intelligence, Internet of Things and secure computation. It partnered with international financial institutions like BNP Paribas, Citibank, DBS Bank, Deutsche Bank and Standard Chartered Bank to help optimize cross-border processes.
Ant is planning to list on the Hong Kong and Shanghai stock exchanges next month. The company is seeking to raise about $35 billion, which would result in the world’s largest initial public offering.