A. General Information
Project Dynamo
B. Lessons Learned
Through extensive collaboration between the BIS innovation Hub and Linklogis, Project Dynamo delivered a prototype platform to enable programmable payments through digital trade tokens along supply chains to facilitate the provision of financing by institutional investors to SMEs.
Project dynamo is new prototype developed as part of Project Dynamo explored how institutional investors can be encouraged to finance small and medium-sized enterprises (SMEs) through the programmability and transferability of digital trade tokens on a public blockchain.
Ensuring access to trade finance to SMEs by reducing risk.
Trade finance and payment.
Use of non-fungible tokens and smart contracts to trigger payment base on the reception of an electronic bill of lading.
Bill of lading.
With respect to programmability, the project demonstrated the use of an electronic bill of lading as a condition for triggering payment - a "marriage" between the digitalization of the trade world and the digitalization of the finance world. In addition, the prototype showcased the use of digital identity for conducting due diligence on the SMEs. The use of Environment, Social and Governance conditions for triggering payment was also explored with an aim to facilitate the building of a greener and more socially responsible supply chain.