InvoiceMate Achieves Successful Private Credit Pilot on XDC Network
InvoiceMate has concluded a successful pilot project, marking a significant milestone by demonstrating the seamless tokenisation of an invoice using the XDC blockchain protocol.
In a groundbreaking transaction, InvoiceMate showcased the potential of obtaining liquidity by tokenising a Real World Asset (RWA). Acting as the loan originator, InvoiceMate secured funds for client H & H International LLC through the tokenization of essential documentation including the invoice. This streamlined process resulted in a cash flow of $FXD 100,000 (FXD) for a 60-day period. $FXD is a fully decentralized stablecoin soft-pegged to US Dollars and over-collateralized with the $XDC token using the Fathom Protocol and primarily focused on for RWA DeFi use cases. The success underscores blockchain-powered financing’s efficiency and innovation in traditional finance.
InvoiceMate has accomplished pivotal milestones, including converting a paper-based invoice into an electronic format, followed by its tokenisation and fractionalisation. These steps allowed for capital provisioning against the fractionalised electronic invoice using the FXD stablecoin for the specified 60-day period.
The company’s remarkable achievements extend beyond this milestone. InvoiceMate has made a significant impact by facilitating over $700,000 in loans within its first four months of operation. This achievement was evenly split between Pakistan and the UAE. After a grueling first year, the forthcoming year appears incredibly promising for InvoiceMate. Forecasts indicate a 300-fold increase in their achievements, propelling the company’s operations to a global scale in both Web2 and Web3 domains. This growth trajectory sets the stage for InvoiceMate’s expansion and influence in the financial landscape.
Participants in the groundbreaking pilot included InvoiceMate as the Loan Originator & Tech Facilitator, H & H International LLC as the Client, Eclipton as the Institutional Digital Asset Custodian, and TradeFinex providing open source smart contracts Standard reshaping the trade finance and private credit Landscape.
Critical solutions employed during the pilot included open source Smart Contract standards for RWAs in Private Credit Solutions, the XDC Network as an Enterprise-Grade, Open-Source Blockchain Protocol, $FXD (a stablecoin pegged to the USD and overcollateralised using the $XDC token), and Eclipton serving as an Institutional Digital Asset Wallet for customisation and facilitating the conversion of stablecoin FXD to USD and vice versa.
This transaction marks an important step in the partnership between TradeFinex and InvoiceMate, a FinTech platform specializing in Invoice Financing. Muhammad Salman Anjum, CEO of InvoiceMate, expressed excitement about this achievement, stating, “This successful transaction represents the first step in our collaboration with TradeFinex using XDC Network. We are actively exploring the XDC Network as the blockchain protocol for future pilots within our invoice financing platform.”
Chen Shanlong, Marketing and Partnerships Lead of XDC Network and TradeFinex, highlighted the significance of deploying smart contracts powered by the XDC protocol in addressing the funding gap for MSMEs in trade finance. “We look forward to scaling up Private Credit deal flow with like-minded partners and establishing standards within the RWA space using Powerful Smart contract Standards created by Tradefinex,” Chen stated.
Mahesh Kumar, CEO of Eclipton, emphasized their commitment to expanding blockchain applications and promoting financial inclusion through innovative solutions. “Eclipton’s core value is to bring more use cases to the blockchain and crypto industry, offering access to a wide range of financial instruments, including stocks, crypto, bank accounts, and cards, all in one place. The collaboration with XDC and Invoicemate further strengthens Eclipton’s commitment to expanding blockchain applications and fostering financial inclusion through innovative solutions,” Mahesh stated.
