A new ethereum-based trade finance platform has been introduced in Russia, getting participation from the country’s fourth biggest retail player.
After a six-month trial stage, Russian blockchain startup Factorin revealed on June 4 that it is implementing its system into production with Dixy already on board. Dixy is a supermarket chain with 2 percent of the market in Russia and roughly $5 billion in revenue last year.
Built on a private version of ethereum, the new framework will enable supplier of Dixy to receive payments in as early as one business day instead of the usual two weeks. The platform can be linked to a number of banks and factoring companies through a single interface, Factorin co-founder Andrei Maklin said.
Alfa Bank and Pervouralskbank are among the first participants, together with various factoring firms in the country. Participants can access the platform through desktop and mobile interfaces.
The product has been in the testing stage since December and has implemented 12,000 test transactions over the period. Maklin said, “Now with the testing we see that the platform significantly reduces the time of settlement, and we’re going into production.”
Julia Zhuvaga, chief financial officer of Dixy, confirmed the news, stating:
“Tech visionaries like to thrill the public with the stories of the beautiful future, but in reality, top management in any company wants to see better results not in a couple of years but as soon as possible. This platform allows us to see the change here and now.”
Maklin said that there are around 20 nodes in its network at present, of which two are “full fledged” nodes on servers of the participants. Three more are currently in process, while others are working in the cloud.
While Dixy is Factorin’s first big client, Maklin is hopeful that it is not the last.
“Working with Dixy for us became an example of innovation in the large companies. We have ambitious plans for retail and other industries,” he stated. The platform intends to scale up and adapt to various types of business in the future.