Blockchain logistics platform dexFreight pilots invoice factoring

user-gravatar

dexfreight semi truckdexFreight, a blockchain-based logistics platform, has completed a pilot project to tokenize freight invoices and use them as collateral to provide invoice factoring at a lower borrowing rate for trucking companies.

The pilot with Centrifuge and the Maker Foundation used decentralized finance (DeFi), an emerging use case in the public blockchain, on top of dexFreight’s logistics platform with several participating freight brokers and trucking companies.

“We can now reduce friction, extend instant credit lines, and offer highly competitive rates to trucking companies on the dexFreight platform,” said Jim Handoush dexFreight’s president and CEO.

The pilot proved that smart contracts and tokenized invoices can be used to create a faster and inexpensive alternative to traditional factoring, the company says.

In the pilot, a third-party logistics (3PL) provider agreed to pay on 45-day terms a carrier who opted to finance shipment invoices using the dexFreight platform’s ‘dexFi’ feature. When the trucking company pressed the dexFi button, it took less than a minute for it to receive the funds at less than a 1% borrowing rate with little or no paperwork involved, the company said.