SWIAT, a blockchain software developer, and Olea, a digital financial market infrastructure, are collaborating to enable fully digitalized supplier financing on the blockchain.
Backed by SC Ventures, Standard Chartered’s innovation, fintech investment and ventures arm, the two fintech firms are expanding their international reach with the partnership, particularly in the financial hubs of Singapore and Frankfurt.
In preparation for financing, Olea tokenized receivables arising from a supplier’s delivery of goods. SWIAT provided its blockchain infrastructure and software, which was designed to conform with capital market, compliance, and regulatory requirements like the incoming Basel III (SCO60). Olea operates a digital infrastructure platform that matches supplier’s financing needs with funders.
The funder for the inaugural tokenized receivable is DekaBank, one of the joint-venture partners in SWIAT. The project leveraged SWIAT’s tokenization engine and Olea’s expertise in trade receivables financing.
The market for trade finance is estimated to be worth at least US$10 trillion annually, according to the World Trade Organization. Supply chain (trade) finance solutions offer companies a way to optimize working capital by extending payment terms to suppliers while ensuring timely payments. Trade finance is considered to be a particularly safe form of finance, as it is underwritten by predictable collateral and documented operational flows.
“This partnership is a great example of our ecosystem coming together to support international trade by tokenizing financial assets,” says Gurdeep Singh Kohli, SC Ventures lead for Europe and Americas, says: “SWIAT enables Olea to issue digital assets, while Olea addresses the challenges of the global economy by tapping into alternative funding sources from institutional base investors. We look forward to supporting future use cases within our ecosystem of ventures.”
Olea chief executive officer Amelia Ng adds: “This partnership aims to digitalize supplier financing using blockchain technology, bringing transparency, security, and efficiency to the process. By leveraging blockchain, we will streamline transactions, reduce costs, and enhance trust among all stakeholders. This innovative approach will empower suppliers with faster access to financing, thereby driving growth and sustainability within the supply chain ecosystem.”
SWIAT expects digital assets to grow in importance globally in the coming years as tokenization increases. In Europe, SWIAT estimates that an open decentralized financial market will grow at a compound annual growth rate of 60% to more than €3 trillion (US$3.33 trillion) by 2030.
