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Mphasis, an Indian tech firm that is majorly owned by American private equity firm Blackstone Group LP, has teamed up with blockchain software developer Bitfury for a trade finance project, Reuters reported.
The report, citing a Mphasis executive, said the collaboration plans to develop a digital token or platform that will automate financial services including international trade payment transactions between countries.
“Bitfury is pleased to partner with Mphasis to improve fragmented financial systems, helping to make global trade more efficient,” Valery Vavilov, Bitfury CEO, said.
Andres Ricaurte, senior vice president and global head of payments for Mphasis, said that although several projects aim to modernize global trade transactions, the current framework on core financial services including cross-border settlement and transaction financing remain “outdated and clunky.”
He further revealed that the resulting inefficiencies, such as compromised visibility for different parties and liquidity lags, have created a worldwide gap of as high as $1.5 trillion between the demand and supply of trade finance.
Thus, the latest collaboration aims to address these flaws in the sector. Vavilov noted that the use of blockchain technology will help them develop an interoperable system that delivers the highest degree of trust, transparency, and security.
“Our goal is to accelerate the disruption and transformation in the trade finance space,” Ricuarte said. “It’s about creating a digital representation of the liquidity that’s trapped inside this supply chain and leveraging that representation to make trade transactions more seamless and transparent to everyone.”
Meanwhile, the Dubai Land Department (DLD) has recently signed a license agreement with the UAE-based Mashreq Bank to launch a blockchain-based mortgage platform to modernize its system. The new e-mortgage system will help speed up and enhance the home loan registration process, as the country eyes to digitalize its services and attract more real estate investments.
