American International Group (AIG) and TradeIX have completed the first blockchain-enabled trade finance transaction for a global logistics company.

TradeIX and global insurer AIG have partnered to enable trade finance transactions for companies, using the blockchain-enabled TIX platform. Trade finance programmes give companies access to capital, allowing them to improve their payment terms with their suppliers and clients.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

This invoice finance transaction took place at the end of September and enabled the logistics company to help its customers extend their payment period whilst maintaining the company’s receivables at current terms. The financing was offered by Standard Chartered and credit risk mitigation was offered by AIG.

TradeIX has developed a trade finance platform powered by permission-based distributed ledger technology. By using this ledger, companies can have their invoices placed securely on the TIX platform, giving real-time visibility to manage customer terms and credit risk. All details of the invoice and the eligible insured amount are securely recorded on the distributed ledger.

The invoices are sold to the finance providers and credit insured by AIG.  AIG also provides the use of Aronova, its trade finance technology provider, which tests policy invoice eligibility for the insured financiers.

Marilyn Blattner-Hoyle, head of supply chain and trade finance at AIG, said: “Using blockchain technology to facilitate trade finance transactions makes it easier for companies to benefit from trade finance, allowing more companies better access to working capital and making insurance more available to finance-providers.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“By using this blockchain-enabled platform, clients are able to benefit from the extended ecosystem that trade finance brings, but with a reduction in friction and cost and an improvement in speed and transparency.”