Indian Factoring Exchanges and MonetaGo Launch Blockchain Network to Prevent Fraud
After years of announcements regarding blockchain Proofs of Concept and Pilots, a first successful enterprise-grade deployment that includes multiple financial services organizations has taken place.
The production system provides a common platform not controlled by any one financial institution to securely and confidentially share information which reduces fraud around receivables financing. The platform is built on Hyperledger Fabric and does not rely on cryptocurrencies to operate.
Receivables financing is one of the fastest growing and most efficient trade finance mechanisms for small businesses to gain credit. The Reserve Bank of India licensed three entities to provide a more efficient venue to do this: RXIL, A.TReDS, and M1xhange. These exchanges provide competitive marketplaces for small businesses to obtain the best financing possible.
The platforms count some of the biggest Indian banks and a number of foreign banks as funding sources and enable the discounting of invoices from corporate organizations, government departments, and public sector undertakings.
Given India’s focus on a digital infrastructure supported by both policy and technological innovation, it is not surprising that this is where the blockchain implementation occurred. The country has been quick in moving toward a digital economy with initiatives like Aadhaar, Demonetization, and the implementation of GST.