ConsolFreight announced a revolutionary pilot powered by technology developed by Centrifuge, that will endow the logistics industry with the possibility of accessing liquidity through collateralized assets as an initial step to transform digital economies. The project will allow traditional freight forwarders to use their receivables to improve their working capital, enabling growth and better payment terms for their customers.
The project, which combines ConsolFreight’s community of freight forwarders and Dai, the decentralized stablecoin from MakerDAO, is powered by Tinlake, a protocol created by Centrifuge to unlock the value of your real-world assets in the decentralized finance ecosystem.
“We are creating a sleek and simple process that reduces the friction between humans and Blockchain technology to provide liquidity to logistics providers by working with the most innovative solutions to transform digital economies,” says ConsolFreight’s CEO, Ernesto Vila. “Our commitment is to eliminate the burden from difficult processes and make them available as ready-to-use solutions that will help the logistics industry to become more efficient in allowing international trade transactions.”
“Dai was created to provide a better way for everybody to participate in the global economy, regardless of size, industry or geographic location,” said Gustav Arentoft, Maker Foundation business development leader for Europe. Working with ConsolFreight to provide small and medium logistics businesses with better access to liquidity through unlocking the value in their collateralized assets creates an opportunity to drive growth for organizations that are currently underserved by traditional financial solutions,”
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This new groundbreaking cooperation permits logistics liquidity and allows the origination, qualification, management, and payment of freight invoices. It is particularly advantageous to translate otherwise tedious processes into real use cases to be leveraged in the logistics industry.
“ConsolFreight brings trade finance to the freight industry by bringing these assets on-chain to tap into the liquidity DeFi provides. By using Tinlake, Consolfreight turns these illiquid non-fungible assets liquid and provides a novel finance product to their shippers,” says Lucas Vogelsang, CEO, and Cofounder of Centrifuge.
ConsolFreight aims to continue to research and find new ways of improving current financial instruments and old-fashioned processes to place the logistics sector, in particular freight forwarders, in a competitive advantage for further developing their businesses and scaling their operations.