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Infibeam partners with blockchain startup Primechain Technologies for building blockchain platform for trade finance sector

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Infibeam Avenues recently made headlines when it announced an investment of Rs 250 crore (US$ 36.15 million) to build a backend blockchain enabled fintech platform. Now, Infibeam has partnered with blockchain startup Primechain Technologies for the state of the art blockchain platform, which will cater to the US$ 12 trillion trade finance sector.

International trade has existed for thousands of years and involves the exchange of capital, goods, and services across international borders. International trade represents a significant share of Gross Domestic Product (GDP) of most countries. Trade finance is an umbrella term for all the monetary activities related to commerce and international trade – lending, the issuance of letters of credit, factoring / invoice discounting, export credit and insurance.

Trade financing protects against the unique risks of international trade – currency fluctuations, political instability, and issues of non-payment & creditworthiness. The market for trade finance is estimated to be above US$ 12 trillion annually. (Source: World Trade Organization).

The following are the prime pain points of today’s trade finance process:

  • Errors and delays due to manual processes
  • Default risks in invoice factoring due to lack of transparency
  • Delays and frauds due to manual Anti-Money Laundering (AML) review.
  • Delayed payments and fraud risk due to multiple intermediaries and data silos
  • Fraud risk due to unverifiable trade documents
  • Paper-based documents are costly to store and share and difficult to authenticate.

The Infibeam-Primechain blockchain platform will enable and provide immutable platform for real-time issuing and sharing of trade documents. It will also enable real-time tracking of cargo, and will provide a real-time platform for cross-border and domestic trade payments. This will also help in real-time, transparent auction platform for goods and freight contracts. This will serve as a secure and transparent real-time factoring / invoice discounting platform in addition to being a platform for real-time KYC & Digital Identity verification and Anti-Money Laundering (AML) review.

The blockchain platform will be built upon the Primechain API & technology stack and will predominantly run on IBM’s Linux ONE servers. IBM’s Linux ONE servers were chosen because of their encryption capabilities, speed, and scalability.


If you have an interesting article / experience / case study to share, please get in touch with us at editors@expresscomputeronline.com

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