Ant Group, the parent company of China’s largest digital payment platform Alipay, today unveiled a blockchain-based trading platform, according to a press release.
The project is named Trusple, an international trade and financial service platform powered by AntChain, the company’s blockchain-based technology solutions.
Trusple aims to make it easier and less costly for all participants – especially Small-to-Medium Enterprises (SMEs) – to sell their products and services to customers around the world. It also reduces costs for financial institutions so they can better serve SMEs in need.
Based on the concept of “Trust Made Simple,” Trusple works by generating a smart contract once a buyer and a seller upload a trading order on the platform. As the order is executed, the smart contract is automatically updated with key information, such as order placements, logistics, and tax refund options. Using AntChain, the buyer’s and seller’s banks will automatically process the payment settlements through the smart contract. This automated process not only mitigates the intensive and time-consuming processes that banks traditionally conduct to track and verify trading orders, but also ensures information is tamper-proof. Further, successful transactions on Trusple enable SMEs to build their creditworthiness on AntChain, making it easier for them to obtain financing services from financial institutions.
“Trusple was designed to solve problems for SMEs and financial institutions involved in cross-border trading,” said Guofei Jiang, President of Advanced Technology Business Group, Ant Group. “Just like when Alipay was introduced in 2004 as the online escrow payment solution to build trust between buyers and sellers, with the launch of AntChain-powered Trusple, we look forward to making cross-border trading safer, more reliable, and more efficient for buyers and sellers, as well as for the financial institutions that serve them.”
A lack of trust among global trading partners has traditionally made it difficult for many SMEs to do business. For buyers and sellers alike, this lack of trust can lead to delays in shipments and payment settlements, in turn placing pressure on SMEs’ financial position and cashflow. Banks that support global trading by SMEs have also faced a longstanding challenge of verifying the authenticity of orders, which has increased banking costs. To tackle these challenges in global trade, Trusple leverages AntChain’s key technologies, including AI, Internet of Things (IoT), and secure computation, to build trust among multiple parties.
During the pre-launch testing period conducted this month, Ms. Jing Yuan, whose company sells glass crystal ornaments to customers around the world, completed the first transaction on the Trusple platform, sending a consignment of goods headed to Mexico. With Trusple, the same transaction that would have previously required at least a week to process, Ms. Yuan was able to receive payment the next day. “With the help of Trusple, the same amount of operating capital can now support more trading orders,” said Ms. Yuan. “I’m now aiming to grow my business by 30 percent next year.”
To help optimize cross-border processes, Trusple has partnered with various leading international financial institutions, including BNP Paribas, Citibank, DBS Bank, Deutsche Bank and Standard Chartered Bank.
Trusple was launched at the Blockchain Industry Summit of the INCLUSION Fintech Conference. Organized by Ant Group and Alipay, the conference aims to foster a global discussion on how digital technology can help build a more inclusive, green, and sustainable world.
AntChain is Ant Group’s blockchain business. According to IPR Daily and patent database IncoPat, Ant Group holds the greatest number of published blockchain-related patent applications from 2017 to the six months ended June 30, 2020. Since the launch of Ant Group’s blockchain business in 2016, the company pioneered the use of AntChain in over 50 blockchain commercial applications and use cases including supply chain finance, cross-border remittance, charitable donations and product provenience.