Vayana TradeXchange Partners with Arqit to Transform Trade Finance
Published: March 27, 2024
Arqit Quantum Inc. and Vayana TradeXchange announce a partnership to use Arqit’s TradeSecure™ digital negotiable instrument technology to transform international supply chains.
Vayana TradeXchange is a global marketplace facilitating the financing of cross-border trade, headquartered in GIFT City and operating under license from the International Financial Services Authority in India (IFSCA). It is part of the Vayana Group which operates India’s largest regulated network for domestic supply chain finance.
The initial focus for the partnership will be India, Singapore, the United Arab Emirates (UAE) and the United Kingdom (UK), nations that are global leaders in the digitalisation of trade. These countries have embraced legislation based on the UN’s Model Law on Electronic Transferable Records (MLETR) that gives legal recognition to digital negotiable instruments (DNIs) allowing them to replace wet ink paper contracts.
The global supply chain finance market is estimated at $17 trillion growing at 3% per annum and stands to be re-energised by the reform in legalising digital assets.
Vayana Group has facilitated over $30bn of financing, serving over 300,000 enterprises in India. Vayana TradeXchange revolutionises cross-border trade finance by making working capital available seamlessly across geographies.
Arqit's first-of-its-kind technology delivers unique, referenceable and transferable digital finance instruments that have broad commercial application and enable businesses to get closer to pools of available liquidity and improve their cash flows. Arqit is a world leader in complying with the new standards, by completed legal review, and in making them provably secure.
This partnership enables exporters to use DNIs to get easy access to working capital against their trade receivables, whilst importers can optimise their cashflows by accessing funding from financial institutions across the globe.
Kalyan Basu, MD & CEO, Vayana TradeXchange said “We are delighted to partner with Arqit to help companies unlock their working capital using these highly secure digital negotiable instruments. With export trade from India alone expected to reach $2 trillion by 2030, this partnership offers businesses easier access to investors/financiers who are willing to lend against receivables based on the negotiation of digital promissory notes and bills of exchange minted on TradeSecure. DNIs will offer immense flexibility to the asset owners in terms of access to a large pool of credible investors with a secure end-to-end digital journey.
David Williams, Founder of Arqit said “The market for digital negotiable instruments is expected to exceed $4 trillion per annum. This partnership is a fusion of India’s leading cross-border supply chain finance platform with Arqit’s groundbreaking TradeSecure which is the only DNI solution that complies with the new laws and delivers permanent provable security. We are excited to take this collaboration to a high scale with Vayana TradeXchange.”
Lord Marland, Chairman of the Commonwealth Enterprise and Investment Council said “The UK government has led the World in legislating to digitise trade finance. India is a crucial trading partner and I am delighted to see British and Indian companies leading the world as a result.“