Russian Food Retailer Dixy Launches Blockchain-based Trade Finance Platform

Moscow-based fintech start-up Factorin has launched a blockchain-powered supply chain and trade finance platform in cooperation with Dixy, the country’s third-largest food retailer, GTReview reports.

Following a successful 6-month pilot phase, Russian blockchain startup Factorin revealed on Tuesday that it is launching its system into Dixy’s production.

The new Ethereum-based system will allow Dixy’s suppliers to receive payments within one business day, which is way shorter and faster compared with the previous 2 weeks. The system is also connected to several banks, including Alfa Bank, Bank National Factoring Co., and Pervouralsbank, and factoring companies (which expedite the settlements between the retailer and multiple suppliers) like GPB-Factoring using a single interface.

The platform, which can be accessed by members through desktop or smartphones, can also facilitate the verification process and reduce physical labor and related risks.

The blockchain-powered open trade platform has been in the test phase since December and has conducted a total of 12,000 test transactions over the period, Factorin founder Andrei Maclean told CoinDesk. The test results revealed that the platform can significantly reduce the calculation time; thus, the decision to commercially launch the system was made.

Currently, the network is equipped with 20 nodes, and two of which are “full-fledged” nodes on the member servers. Three nodes are currently in the process of being created, while the rest are still working in the cloud.

Last month, payment startup Flexa and Gemini, a Winklevoss-owned digital currency firm, formed a retail initiative that facilitated instant cryptocurrency payments in stores and online for several retail merchants including Crate and Barrel, Nordstrom, Starbucks, Jamba Juice, Bed Bath & Beyond, and Amazon-owned Whole Foods. Through the new SPEDN mobile wallet app, consumers can pay merchants in Bitcoin, Bitcoin Cash, Ethereum, and Gemini Dollar.