Hive project using Ethereum for invoice funding
The Hive Project, a company that uses cryptocurrency and the Ethereum blockchain for trade finance, has launched its platform.
The company announcement Friday (June 30) that its portal is up and running to connect SMEs to trade finance by turning unpaid invoices into tradable assets. Each invoice is assigned a unique fingerprint, the company said, by tokenizing each invoice and linking them to the blockchain.
Although the platform has been launched, the Hive project said it had not yet provided a marketplace where SMEs could access funding, but said that was ultimately its goal.
“We want to help small businesses solve their liquidity challenges by leveraging blockchain technology to provide financing options previously only available to large businesses,” company CEO and co-founder Jure Soklic said in a statement. a statement. “Our platform will significantly streamline the invoice issuance and payment processes, optimizing the ability of small and medium-sized businesses to access cash for day-to-day operations and fund their expansion.
On its platform, the Hive Project issues tokens, which can be granted for the right to purchase an invoice on its platform. These token holders can also access the company’s credit scores when evaluating whether to fund that outstanding invoice. SMEs can upload their invoices via Ethereum to the platform to seek funding.
“The Hive project helps small businesses automate invoicing and payments, bringing the benefits of blockchain innovation to business entities previously deprived of immediate access to finance,” said Richard Titus, former vice president of Samsung Electronics. Visual Display, CEO of Prompt.ly and current advisor to Project Hive. “The end state of Project Hive, a marketplace with advanced business analytics for peer-to-peer lending, will rapidly increase the liquidity available to small businesses and expand today’s often mercenary factoring and lending ecosystem. “
The Hive project also announced that it had held a public sale this week, with the aim of raising 2,000 cryptocurrency bitcoins, which it says will go towards infrastructure development and the creation of the bill financing fund. Hive, which will be used to lend to SME borrowers directly. The sale will last six weeks, he said.