Tradeshift Cuts Down On Its Transaction Costs Using Ethereum

Tradeshift, one of the best supply chain fintech startups, recently reported that it has successfully cut down its cross-border transaction costs using Ethereum between suppliers and buyers. At present, Tradeshift is serving two million firms through its platform. Tradeshift Frontiers, an innovative trading platform of Goldman Sachs, constitutes invoice values as tokenized IOUs between sellers and buyers and then settles them in the form of a novel for on-chain traditional currency.

FlowToken, An IOU Of Tradeshift

The so-called tokenized IOUs, FlowTokens, have implications for financial institutions and banks that make their money through cross-border payments. FlowTokens could efficiently do for trade finance and supply chain management what Facebook’s Libra is trying to do at a consumer level with stablecoins and wallets. Earlier this year, Tradeshift had completed its domestic transaction with the help of its partner, Monerium. IKEA Iceland and Nordic Store were part of the transaction.

Sveinn Valfells’ And Gert Sylvests’ Statements

The next phase of testing involved a smart contract which contained a euro-dominated e-money during cross border transactions. According to Monerium and Tradeshift, they first settled a fixed fee cost of 17 cents on €1024 and 16 cents on €512. Sveinn Valfells, CEO of Monerium, confirmed that Monerium’s e-money on Ethereum would be used in Germany, Iceland, Lithuania, Denmark, France, U.K. and Lithuania, France and Sweden. Gert Sylvest, Tradeshift’s co-founder and GM of Tradeshift Frontiers said that for cross-border payments, they have accepted invoice and tokenized the same on Ethereum project.

Hafsteinn Guðbjartsson’s Grievance

Contrary to Tradeshift, the CEO of Nordic Store, Hafsteinn Guðbjartsson, complained that lack of transparency and crippling costs pose significant problems in testing a new blockchain. He also added that they have issues with Thailand’s currency since it has many financial constraints. He backed his statement by saying that they send dollars to Thailand, and the country never receives the amount they requested. Moreover, Thailand’s banks charge a significant amount of fee on a small amount, which is problematic for them.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Tradeshift Cuts Down On Its Transaction Costs Using Ethereum

Sandeep Kumar Mishra

Sandeep is an avid cryptocurrency enthusiast and a keen & passionate blogger. He has a strong mix of skills in the areas of computer networking, cryptography, algorithms, and data structures and specializes in ERC20 tokens. Lately, he is taking a lot of interest in blockchain-powered AI solutions, about which he is also reading and writing extensively. He has to his name dozens of deeply researched articles about cryptocurrencies, blockchain, AI, and IoT. Apart from that, he loves to keep track of the latest trends in social media and digital marketing space. Also, as a huge proponent of blockchain and cryptocurrencies, Sandeep tries to deliver all the latest cryptocurrency news to ardent crypto supporters like yourselves. If you like his content, feel free to follow him on LinkedIn.