Pelago Labs Unveils Crypto-Enabled Supply Chain Financing Platform on Stellar
On March 25, Pelago Labs made a groundbreaking announcement regarding its integration with Stellar to create a crypto-enabled supply chain financing platform. This innovative solution tokenizes and fractionalizes the account receivables of accredited buyers, providing smaller and supplier-specific representations.
Pelago Labs, based in Vancouver, revealed that the integration with Stellar aimed to unlock pre-settlement liquidity for suppliers. By leveraging the buyer’s credit, the platform empowers suppliers to access the working capital necessary to enhance cash flow efficiency and ensure seamless order fulfillment.
Suppliers utilizing the platform can settle funds in USDC on Stellar through PolyFlow’s liquidity-pool-based payment channel or opt for settlement through authorized providers in local currencies. Additionally, Pelago’s supply chain financing platform incorporates an on-chain KYC system developed by PolyFlow and an enterprise-grade wallet.
Pelago Revolutionizes Supply Chain Financing Through Stellar Integration
In a recent press release, Pelago Labs announced the integration of Stellar’s smart contract platform into its supply chain financing solution. This integration allows suppliers to secure working capital backed by the buyer’s credit, facilitating order fulfillment even for suppliers without direct contact with the end buyer.
Denelle Dixon, CEO & Executive Director of the Stellar Development Foundation, commended Pelago’s platform for showcasing the transformative potential of blockchain technology in finance. She emphasized the importance of providing small and medium-sized enterprises with on-chain credit and liquidity to drive economic growth and adoption.
“This innovative solution demonstrates the practical utility of the Stellar network and USDC in facilitating real-world working capital lending, enabling SMEs to access decentralized financial solutions that eliminate liquidity constraints and streamline their access to working capital.” – Raymond Qu, co-founder of PolyFlow
Raymond Qu highlighted the efficiency and scalability of smart contracts on Stellar, underscoring their role in enabling Pelago’s supply chain financing solution to cater to complex business models.
Creditor Extends $1M+ USDC Credit Facility on Pelago SCF
In a significant development, two suppliers on the Pelago Supply Chain Finance Platform secured a $1,000,000 USDC on-chain loan from creditor Trusta Labs on the Stellar network, facilitated by PolyFlow’s PayFi protocol. This initiative enabled the suppliers to overcome cash flow challenges and maintain operational stability ahead of buyer payments.
Pelago SCF is committed to revolutionizing supply chain finance by offering crypto-backed lending to real-world businesses. Through this platform, creditors can deploy digital assets to support SMEs while eliminating traditional banking barriers for suppliers.
The Pelago team emphasized that the platform provides equal access to global financial systems at a reduced cost, leveraging the Stellar network’s capabilities for trading in digital assets and seamless integration with the traditional economy.