China Systems, Enigio and CargoX closing the Digital Trade Gap

Published: November 2, 2021
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digital bills of exchange

China Systems, the global provider of trade and supply chain finance solutions, has partnered with Enigio and CargoX to seamlessly integrate the blockchain processing of electronic Bills of Lading and Bills of Exchange. The integrated solution bridges physical and financial supply chain processes based on a digital handshake between buyer and supplier, triggering receivables financing.

In August, China Systems announced the concluded development of their end-to-end Digital Collections with Receivables Financing, a fully digital re-engineering of a paper-based process by integrating different service providers in a campaign to instantly unlock working capital through a frictionless and highly secure API based exchange of commitments between buyer and supplier.

Joel Schrevens, Solutions Director of China Systems, said:

“We are pleased to be able to offer these advanced digital solutions to the Trade and Supply Chain Finance community, to help them surpass the archaic document-based processes and switch to real-time secure electronic trade processing. Besides processing accuracy, speed, improved user experience and cost-efficiency, it is most important that the new technologies reduce the risk of documentary fraud, which can often be linked to money laundering, terrorist financing, or the circumvention of OFAC sanctions or other restrictions, such as export prohibitions, licensing requirements, or controls. Codesharing our services with business and technology partners with a similar vision like Enigio and CargoX is part of our holistic trade ecosystem approach. It is what our customers need, and it will help in paving the digital path toward a bright future for global trade.”

The China Systems solution was developed with the objective of fully adhering to the International Trade and Forfaiting Association (ITFA) dDOC specification for digital negotiable instruments (DNI Initiative) and the United Nations Commission on International Trade Law (UNCITRAL) Model Law for Electronic Transferable Records (MLETR).

It has also been a key objective to apply a platform-agnostic approach as promoted by the International Chamber of Commerce (ICC). To achieve this, China Systems has fully integrated its solution with Enigio’s trace:original, which is a DLT based solution, enabling the processing of freely transferable digital original documents.

China Systems is an active ITFA Fintech and ICC member, and an awardee of four SWIFT Compatible Application labels in 2021 for Trade and Payments. Their Trade Digitalisation Services (TDS) team is specialised in designing and implementing digital operating models, leveraging modern technologies (AI, IoT, DLT, data analytics, digital signatures), with a strong focus on creating a superior user experience and optimized customer service model. Using its vast experience in implementing trade solutions and integrating with trade ecosystem partners, their objective is to provide high-quality services and solutions to financial institutions and to corporations, consulting firms, strategy advisors, and technology companies active in international trade.

Enigio’s trace:original solution is fully DNI and MLETR compliant. The solution creates digital original documents that can be possessed and freely transferred between anyone. The distributed ledger technology used for trace:original is only used for the purposes of validation, verification and recording possession. trace:original is at its best for digital negotiable instruments and documents of title. The solution comes with a set of predefined APIs allowing trade platform and services providers to seamlessly integrate the creation and handling of trace:original digital original documents into their business processing and decision flows.

CargoX specialises in Blockchain Document Transfer (BDT) solutions. The CargoX platform helps companies build trust in a trustless environment for the logistics, manufacturing, finance, trading, energy, and services industries by enabling companies to securely transfer their most sensitive documents, including documents of title. The CargoX platform is built on the neutral Ethereum public blockchain for transaction and ownership validation.