Tradeshift intermediated supply chain transaction for IKEA using e-money

Wednesday 2 October 2019 10:56 CET | News

US-based supply chain payments service Tradeshift has announced the completion of a purchase from IKEA Iceland using the Ethereum blockchain.

Icelandic retailer Nordic Store bought goods from IKEA Iceland and settled the e-invoice with e-money issued by Icelandic fintech company Monerium. The transaction used Tradeshift’s Ethereum-based platform and was settled using Icelands fiat currency, the Krona.

According to Tradeshift, with a ‘smart invoice’ they can issue tokens that represent the future cash flow down to each dollar on the invoice. Whoever holds tokens will get paid upon due date, which makes smart invoices ideal to use for financial-services apps.

The company announced that this opens up a whole new way market: Supply Chain Finance. If you sell the tokens back to the buyer, you basically have dynamic discounting. Tokens can also be used as collateral to finance sub-suppliers; because Monerium can issue tokens, smart contracts can issue credit to companies automatically, keeping up the cash flow. You then avoid double-dipping finance fraud, which is when the supplier sells the same invoice two or more times, because now you can only sell a token once, Tradeshift representatives have added.

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Keywords: Tradeshift, IKEA, blockchain transaction, e-invoicing, Ethereum, e-money, Monerium, fintech, supply chain finance, dynamic discount, electronic money
Countries: World

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