Shipment of Metals financed with electronic promissory notes

Swiss fintech start-up FQX announces a set of successful transactions via eNote, an electronic promissory note. The eNotes with a total value of more than USD 500’000 were used by a Swiss commodity trader to finance a transatlantic metal shipment. The transaction was facilitated using sensor and tracking devices by ARVIEM.

Complex traditional financing processes often hinder companies in their growth. Electronic promissory notes offer a remedy. Promissory notes are a widespread traditional financial instrument that enable companies and individuals to obtain finance on the basis of an unconditional promise to pay. In electronic form they offer unprecedented flexibility and efficiency in trade and corporate finance. Liquidity flows directly to the companies that need financing without the need to involve other intermediaries.

What sounds plausible in theory does also work in practice. FQX reports two further successful financings via its electronic promissory note named eNotefor a total of more than USD 500'000. The two electronic promissory notes were used to finance transatlantic metal shipments by a Swiss commodity trader. A private investment firm financed the transaction and generated an attractive return. No bank was involved in the financing of this transaction. By storing the eNoteon the Swiss Trust Chain of Swisscom and Swiss Post, transactions were fully digital and fraud risk was minimized.

Electronic promissory notes make liquidity available where it is needed for businesses, while also offering attractive investment opportunities for financial institutions, says Frank Wendt, FQX Chief Executive Officer. Each eNote issued via FQX is assigned an ISIN number, making it easily transferable to other investors, he added.

Each eNote is stored and recorded on the Swiss Trust Chain, a banking-grade DLT-system maintained by Swisscom and the Swiss Post. The integrated qualified electronic signatures used to securely issue and transfer the eNotes on the FQX platform are provided by Swisscom Trust Services.

Collaboration with ARVIEM

The transaction was facilitated using an ARVIEM tracking and sensor device, allowing for a track and trace functionality which serves to reduce transaction risk. Arviems technology provided real-time information to all parties involved in the transaction on the location of the goods also reporting on door openings, intrusions, temperature, container damage and shocks.

Our IoT enabled technology serves as the layer between physical cargo and the digital environment of DLT technology connecting specific cargo to financial transactions from container doors closing to doors opening. This provides assurances to allow all the parties in the supply chain to grow their business with confidence, says Stefan Reidy, CEO of Arviem.

(Press release / SK)
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