Global Sourcing and Trade Finance: Blockchain in the Supply Chain and Ripple’s Role in Re-balancing Cross-Border Liquidity in Real-Time

Highlights

.. the problems in global sourcing trade and finance lend themselves to distributed ledger solutions..

..potential to significantly improve the supply chain by integrating the movement of goods with transaction processing..

..banks to transfer value bilaterally..rebalance liquidity in real-time..

..some more ambitious projects include improving cross-border payments through enhanced messaging, and potentially leading to real-time settlement..

..The near real-time visibility obtained by the banks allows capital to move more quickly and consequently can lead to an increase in short-term lending activities thanks to reduced risk, benefiting all stakeholders in the transaction..

.. Putting assets on the blockchain would help clarify asset ownership and greatly simplify due diligence..

A major challenge in trade and supply chain revolves around the lack of visibility in the flow of goods as well as agreements among buyers, suppliers, and financiers.

This lack of visibility increases cost of capital. By using ‘a technology’ which…