MineHub Technologies says it has launched a trade finance network application, the first in a series of network applications the blockchain platform hopes to launch in the coming months.

The company said two years ago that it wants to standardise, structure and digitalise letters of credit (L/Cs) amongst other aspects of trading operations and environmental and social governance (ESG) compliance in mining and metals supply chains (DC World News, 22 November 2019).

Digital connections

MineHub's trade finance network application is designed to bring visibility, security and efficiency to financiers of commodity transactions, whilst digitising administration and communication between lenders and financiers.

The application connects borrowers with their financiers via a secure communication channel to request finance as well as receive and share relevant documents and information authenticated by third parties like service and logistics providers. This should save costs and time while reducing fraud and errors.

Secure blockchain

Financiers can access real-time transaction data, giving them visibility to relevant events, developments, collateral and assets they are financing. The origin and provenance of data and documents are recorded in an immutable audit trail secured by blockchain technology.

Users can verify the authenticity of key documents like inspection reports, invoices and warehouse receipts, and improve control over key risk events like collateral releases and assignments. They can also immediately verify compliance of transactions with ESG lending criteria.

Contour L/C partnership

MineHub is also integrating with partners to further increase the breadth and depth of trade finance services that users can access via its platform.

Its partnership with Contour for example will provide users with access to electronic L/Cs. MineHub's platform provides real-time visibility and collaboration of upstream and downstream supply chains, while Contour brings together banks, corporates and other partners on a common, digital network for trade finance.

Further details on MineHub's trade finance network application can be found here.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.