As part of the Singapore Fintech Festival, Amazon is involved in a blockchain tokenization simulation in collaboration with stablecoin firm StraitsX and NTT Digital.
Typically Amazon Marketplace sellers receive payments every 14 days, but it can stretch to 90 days under certain circumstances. These sellers account for the majority of Amazon sales. The simulation involved tokenizing these receivables and placing them on an exchange where lenders can buy them at a small discount. This kind of tokenized trade finance would allow the marketplace sellers to receive money faster.
In the simulation, those sellers receive the StraitsX XSGD stablecoin wrapped as Purpose Bound Money (PBM). The wrapper can include conditions for the money’s usage or simply ensure compliance with regulations such as KYC.
However, this is purely a simulation, not a planned Amazon solution.
Several years ago, supply chain finance firm TradeShift envisaged a similar platform but didn’t launch it. Other startups are using blockchain to tokenize trade credit. Tokenization startup Centrifuge initially was dedicated to SME trade finance but has substantially diversified away from the asset class. Others such as Credix have stepped in to fill the gap, although it’s now more focused on SME buy now, pay later (BNPL).
Amazon, StraitsX and NTT Digital initiatives
Last year as part of the Monetary Authority of Singapore’s Project Orchid, Amazon took part in ecommerce escrow payment experiments with FAZZ and Grab. In other words, the client makes the payment, but Amazon only receives the payment once the goods are delivered.
This week StraitsX also announced a collaboration with Alipay+ in which Singapore GrabPay merchants can receive instant settlement for purchases made by tourists. It applies to tourists that pay with Alipay+ linked foreign wallets, with the merchant receiving StraitsX’s XSGD stablecoin.
Meanwhile, NTT Digital, a subsidiary of telecoms firm NTT Docomo, provided its scramberry wallet suite for the Amazon seller simulation. It unveiled the web3 wallet in March, but launched it for corporate customers in September. It now supports overseas users as well.
