A Global First – Inventory Monetization Leveraging NFTs Completed on the VeChainThor Blockchain
[email protected] and VeChain announced today that the NFT underlying the first Inventory Monetization transaction has been officially minted on the VeChainThor blockchain. The €1.6 million transaction will significantly improve cash flow and access to working capital for a business involved in the design and production of industrial and specialized vehicles in Italy, the US and Africa. The development represents a global first, and marks the start of a new model for access to capital in the supply chain for manufacturing and trading companies, as well as offering a new asset class for investors.
[email protected]The fintech platform connects manufacturing companies, from heavy manufacturing and chemicals to high-end food and fashion, with financiers who monetize unsold shares via a legal “true sale” mechanism, enabling companies to release capital trapped in stored inventory . Manufacturing companies can use this revolutionary commercial facility as a more cost-effective alternative to traditional banking or asset-based lending options, without incurring debt. When producers secure a buyer for their stock, they can ask to buy it back before selling to the end customer.
[email protected]The fintech platform facilitates access to a new source of improved cash flow for businesses facing increasing pressure from supply chain disruptions. Backed by proprietary technology and integration with the VeChainThor blockchain that manages the NFT lifecycle, the platform allows investors to have continuous oversight of inventory and their subsequent trading activities. In addition, the integration with the manufacturers’ existing systems, as well as enabling monitoring activities, means that the manufacturing company can receive reports on inventory optimization and risk management.
The next phase of the alliance between [email protected] and VeChain will launch in the coming months, with additional Inventory Monetization transactions worth up to USD8.5 million budgeted, also funded by VeChain as an anchor investor, together with several liquidity providers including VeChain ecosystem stakeholders, additional cryptocurrency managers and direct investors through liquidity pools partnership.
Alessandro Zamboni, CEO of [email protected] so, “The scale of the commodity monetization market is huge. For too long, inventory as businesses has been a cash drain until it’s sold. Traditional lenders have offered discount rates and highly restrictive covenants. Supply chains have yet to recover from Covid-19, shifting to ‘just in case” from “just in time” means that the costs that businesses have had to bear have continued to skyrocket. Our inventory revenue facility offers a new, more cost-effective option for businesses to free up significant levels of working capital. In VeChain, we have found the ideal , the visionary partner to move forward on this path using digital assets, and we look forward to offering access to this huge new market to more investors.”
Sunny Lu, CEO of VeChain Foundationso, “This partnership brings to market a highly innovative solution that uses new digital technologies to solve a decades-old problem for businesses globally. By implementing this, our companies can together limit a need for overproduction, promote sustainable global development, improve cash flow for businesses and create a new digital asset class that brings capital directly to the real economy. We look forward to launching – phase 2 of our alliance to involve our community and the rest of the crypto market in this disruptive initiative”.
