Blockchain solution provider Fluent has partnered with Euler Hermes to offer single transaction credit insurance on its Trade Asset Marketplace.
Through the partnership, Fluent will use Euler Hermes’ application program interface (API)-based Single Invoice Cover.
Fluent co-founder and marketing director Casey Lawlor tells GTR: “With Euler Hermes’ credit solution, you can receive a quote for single coverage insurance in real time and then purchase the insurance. This enables our marketplace model, where a bank could purchase the insurance to keep the risk on their books or a non-bank lender could purchase it to cover a riskier receivables purchase.”
Euler Hermes launched the Euler Hermes Digital Agency this year to innovative API-driven tools to “reinvent trade”.
“Blockchain technology offers the opportunity to reinvent trade credit insurance and to grow safely,” says Christophe Spoerry, co-founder of the Euler Hermes Digital Agency.
The Fluent Trade Asset Marketplace is currently in trial phase, with lenders and businesses ready to buy and sell trade receivables “in the very near future”, says Lawlor. It aims to be a multi-bank, multi-lender trade assets platforms leveraging distributed ledger technology.
“Transference of the asset occurs on chain, allowing one or multiple assets to be traded and settled with other assets or currency in a matter of seconds. Ownership is tracked using the chain throughout the life of the asset. We [also] have our own payment rails within network,” explains Lawlor.
Fluent won the Bankers Association for Finance and Trade’s (BAFT) Solution Showcase at the organisation’s Chicago conference on October 28, beating competitors IBM, Newgen Software and Broadridge. The competition involved finding ways to identify a receivable and perfect interest in that receivable.