Blockchain Startup MakerDAO, Tradeshift Partner To Tokenize Unpaid Invoices

Blockchain, News | July 9, 2018 By:

Business commerce platform Tradeshift has partnered with blockchain startup MakerDAO to launch a pilot program aimed at unlocking liquidity access for small businesses around the globe.

Founded in 2010, Tradeshift offers solutions for procurers to pay, supplier engagement, and financial services, and enables companies and partners to build custom or commercial apps on its platform. It enables supply chain payments and marketplaces for more than 1.5 million businesses globally, including large enterprise brands such as Air France-KLM, DHL, Fujitsu, HSBC, Siemens, Societe Generale, Unilever, and Volvo.

MakerDAO is a decentralized organization dedicated to bringing stability to the crypto economy. In 2017, MakerDAO launched DAI, a decentralized stablecoin on the ethereum blockchain. DAI eliminates volatility through an autonomous system of smart contracts. It was specifically designed to respond to market dynamics in order to maintain a price pegged to the US dollar.

In its announcement, MakerDAO said that DAI is currently in a pilot test for Tradeshift Cash, an instant invoice financing solution, in a bid to tokenize unpaid invoices of small businesses. The goal is to combine Tradeshift Cash with the stability and security of the Dai Credit System to establish a supply chain liquidity marketplace for businesses, developers and investors.

“The trade receivables market has very tight margins, which leaves no room for a volatile digital currency as instrument for settlement,” said Tradeshift co-founder Gert Sylvest and GM of Frontiers, Tradeshift digital innovation arm. “The Dai Credit System is a unique vision for a transparent and stable token that allows anyone to represent real-world currency settlements on the blockchain. It is a vision that we are very excited about.”

The partnership will enable businesses to create real-time and short-term financing models backed by anything from institutional finance to peer lending. Developers will be able to build investor applications to enable real-world B2B settlements that benefit from the efficiency, transparency, speed and security of the blockchain utilizing the DAI stablecoin.

“Our partnership with Tradeshift proves the potential of the blockchain to level the economic playing field for businesses of all sizes around the globe,” said Rune Christensen, CEO of MakerDAO. “At the same time, we’re delivering new options for investors by creating an entirely new class of investment vehicles with vetted risk, based on real world assets.”

The partnership came after Tradeshift announced a $250 million Series E funding round led by Goldman Sachs and the Public Sector Pension Investment Board (PSP Investments).