Vayana TradeXchange partners with Arqit to transform trade finance
Arqit Quantum Inc. (ARQQ) partners with Vayana TradeXchange to revolutionize international supply chains using digital negotiable instruments. The partnership aims to enhance cross-border trade finance in key global markets like India, Singapore, UAE, and UK. Vayana TradeXchange, a major player in trade financing, will leverage Arqit's TradeSecure technology to provide secure and efficient working capital solutions. The global supply chain finance market, estimated at $17 trillion, is set to benefit from the legal recognition of digital assets, driving growth and liquidity in the industry.
The partnership between Arqit Quantum Inc. and Vayana TradeXchange represents a strategic move in the financial technology sector, particularly in the area of supply chain finance . The utilization of Arqit's TradeSecure™ technology could potentially streamline the process of securing working capital for businesses engaged in international trade, tapping into a $17 trillion market .
From a financial perspective, this partnership may lead to increased efficiency and reduced transaction costs, which can improve the profit margins for both exporters and importers. The focus on digital negotiable instruments (DNIs) aligns with the global trend towards the digitalisation of financial services , which has been accelerated by the COVID-19 pandemic. By leveraging DNIs, businesses could have quicker access to liquidity, which is essential for maintaining cash flow and operations, especially for small and medium-sized enterprises (SMEs).
Investors and stakeholders in Arqit Quantum Inc. may view this partnership as a positive development, given the potential for market expansion and the company's compliance with new digital asset legislation. However, it is important to monitor the adoption rate of the technology and the partnership's ability to scale, as these will be key indicators of its long-term success and impact on the stock performance of Arqit.
The adherence to the UN’s Model Law on Electronic Transferable Records (MLETR) by countries like India, Singapore, the UAE and the UK is a significant legal milestone that facilitates the use of digital negotiable instruments. This legal framework provides the necessary legal recognition for DNIs to serve as a substitute for traditional paper-based contracts, which has historically been a barrier to the digital transformation of trade finance.
Arqit's compliance with these legal standards, as well as their focus on provable security , addresses a critical concern in the digitalisation of assets: cybersecurity. The legal review completed by Arqit ensures that their digital finance instruments meet the stringent requirements that come with handling sensitive financial transactions. It is this legal robustness that may give them a competitive edge in the market and could become a deciding factor for businesses when choosing a trade finance platform.
However, the long-term impact of these legal changes and their acceptance by the broader financial community will be important to the partnership's success. It is important for stakeholders to keep an eye on regulatory developments and international harmonization of laws pertaining to digital assets, as these can significantly influence the trajectory of digital trade finance.
The market for supply chain finance is growing steadily and the introduction of digital negotiable instruments could act as a catalyst for further growth. The partnership's initial focus on key markets like India, Singapore, the UAE and the UK is strategic, as these nations are at the forefront of trade finance digitalisation. This regional focus aligns with the broader trend of economic digital transformation , which has been identified as a key driver for future economic growth.
With India's export trade projected to reach $2 trillion by 2030, the demand for efficient trade finance solutions is expected to surge. This presents a significant opportunity for Arqit and Vayana TradeXchange to capture a sizable portion of the market. The ability of DNIs to provide a secure and efficient means of accessing working capital could make them highly attractive to a wide range of businesses, potentially leading to rapid adoption and market penetration.
Nonetheless, it is essential to consider the competitive landscape and potential challenges such as technology adoption barriers, the readiness of financial institutions to embrace DNIs and the need for continuous innovation to stay ahead in a rapidly evolving market. Monitoring the partnership's performance metrics and market response will be key in evaluating its impact on the business landscape.
03/27/2024 - 12:00 AM
LONDON, March 27, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) (Arqit), and Vayana TradeXchange announce a partnership to use Arqit’s TradeSecure™ digital negotiable instrument technology to transform international supply chains.
Vayana TradeXchange is a global marketplace facilitating the financing of cross-border trade, headquartered in GIFT City and operating under license from the International Financial Services Authority in India (IFSCA). It is part of the Vayana Group which operates India’s largest regulated network for domestic supply chain finance.
The initial focus for the partnership will be India, Singapore, the United Arab Emirates (UAE) and the United Kingdom (UK), nations that are global leaders in the digitalisation of trade. These countries have embraced legislation based on the UN’s Model Law on Electronic Transferable Records (MLETR) that gives legal recognition to digital negotiable instruments (DNIs) allowing them to replace wet ink paper contracts.
The global supply chain finance market is estimated at $17 trillion growing at 3% per annum and stands to be re-energised by the reform in legalising digital assets.
Vayana Group has facilitated over $30b n of financing, serving over 300,000 enterprises in India. Vayana TradeXchange revolutionises cross-border trade finance by making working capital available seamlessly across geographies.
Arqit's first-of-its-kind technology delivers unique, referenceable and transferable digital finance instruments that have broad commercial application and enable businesses to get closer to pools of available liquidity and improve their cash flows. Arqit is a world leader in complying with the new standards, by completed legal review, and in making them provably secure.
This partnership enables exporters to use DNIs to get easy access to working capital against their trade receivables, whilst importers can optimise their cashflows by accessing funding from financial institutions across the globe.
Kalyan Basu, MD & CEO, Vayana TradeXchange said:
“We are delighted to partner with Arqit to help companies unlock their working capital using these highly secure digital negotiable instruments. With export trade from India alone expected to reach $2 trillion by 2030, this partnership offers businesses easier access to investors/financiers who are willing to lend against receivables based on the negotiation of digital promissory notes and bills of exchange minted on TradeSecure. DNIs will offer immense flexibility to the asset owners in terms of access to a large pool of credible investors with a secure end-to-end digital journey.”
David Williams, Founder of Arqit said:
“The market for digital negotiable instruments is expected to exceed $4 trillion per annum. This partnership is a fusion of India’s leading cross-border supply chain finance platform with Arqit’s groundbreaking TradeSecure which is the only DNI solution that complies with the new laws and delivers permanent provable security. We are excited to take this collaboration to a high scale with Vayana TradeXchange.”
Lord Marland, Chairman of the Commonwealth Enterprise and Investment Council said:
“The UK government has led the World in legislating to digitise trade finance. India is a crucial trading partner and I am delighted to see British and Indian companies leading the world as a result.“
About Arqit
Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) (Arqit) supplies a unique encryption software service which makes the communications links of any networked device, cloud machine or data at rest secure against both current and future forms of attack on encryption – even from a quantum computer. Compatible with NSA CSfC Components and meeting the demands of NSA CSfC Symmetric Key Management Requirements Annexe 1.2. and RFC 8784, Arqit’s Symmetric Key Agreement Platform uses a lightweight software agent that allows end point devices to create encryption keys locally in partnership with any number of other devices. The keys are computationally secure and facilitate Zero Trust Network Access. It can create limitless volumes of keys with any group size and refresh rate and can regulate the secure entrance and exit of a device in a group. The agent is lightweight and will thus run on the smallest of end point devices. The product sits within a growing portfolio of granted patents. It also works in a standards compliant manner which does not oblige customers to make a disruptive rip and replace of their technology. Arqit is winner of two GSMA Global Mobile Awards, The Best Mobile Security Solution and The CTO Choice Award for Outstanding Mobile Technology, at Mobile World Congress 2024, recognised for groundbreaking innovation at the 2023 Institution of Engineering and Technology Awards and winner of the National Cyber Awards’ Innovation in Cyber Award and the Cyber Security Awards’ Cyber Security Software Company of the Year Award. Arqit is ISO 27001 Standard certified. www.arqit.uk
About Arqit TradeSecure™
Arqit TradeSecure™ enables the creation, safekeeping and secure transfer of Digital Negotiable Instruments (DNIs). DNIs are a globally recognised paper trade finance instruments: e.g. Promissory Notes & Bills of Exchange. As a result of recent legislation DNIs now have the same legal standing as paper instruments and will be an integral part of 21st century corporate working capital solutions including supply chain and invoice finance.
TradeSecure improves business performance for everybody in the supply chain by:
Freeing up working capital for Buyers to pass on to their Suppliers, Allowing businesses to improve cash flow, Driving down costs across the entire supply chain, Generating a direct bottom line contribution for Buyers, Providing end to end data transparency and a full transaction audit trail, Making it easier for a range of Investors to provide much needed working capital finance, Increasing security and reducing operational risk. Arqit’s quantum-safe encryption technology provides a robust security solution, which harnesses our military-grade data encryption expertise. Secured by symmetric digital keys and notarised on a quantum-secure ledger, DNIs can be created, transferred and stored in a fully auditable and secure manner throughout their lifecycle. tradesecure.arqit.uk
About Vayana TradeXchange
Vayana TradeXchange is a leading global cross border trade finance platform that operates under license from International Financial Services Centres Authority (IFSCA), GIFT City, India’s first global financial center. As a wholly owned subsidiary of Vayana, India's largest supply chain finance fintech, VTX provides an auction-based marketplace connecting exporters and importers, enabling access to cross-border trade finance products. VTX's solutions help businesses effectively manage trade receivables and payables, enhancing cash flow management for businesses on a global scale. The platform has successfully onboarded prominent financial institutions such as the State Bank of India, India Factoring, VoloFin, and Drip Capital as financiers. Additionally, VTX is actively engaged in expanding its financier network and aims to onboard an additional 15 financiers by the end of FY 2024.
Media relations enquiries: Arqit : pr@arqit.uk Vayana: hitesh@vayana.com Website: https://vayanatradexchange.com/
Investor relations enquiries: Arqit : investorrelations@arqit.uk Gateway : arqit@gateway-grp.com
Caution About Forward-Looking Statements
This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements are based on Arqit’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Arqit’s control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Arqit to predict these events or how they may affect it. Except as required by law, Arqit does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date this communication is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this communication may not occur. Uncertainties and risk factors that could affect Arqit’s future performance and cause results to differ from the forward-looking statements in this release include, but are not limited to: (i) the outcome of any legal proceedings that may be instituted against the Arqit, (ii) the ability to maintain the listing of Arqit’s securities on a national securities exchange, (iii) changes in the competitive and regulated industries in which Arqit operates, variations in operating performance across competitors and changes in laws and regulations affecting Arqit’s business, (iv) the ability to implement business plans, forecasts, and other expectations, and identify and realise additional opportunities, (v) the potential inability of Arqit to successfully deliver its operational technology, (vi) the risk of interruption or failure of Arqit’s information technology and communications system, (vii) the enforceability of Arqit’s intellectual property, and (viii) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Arqit’s annual report on Form 20-F (the “Form 20-F”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on 21 November 2023 and in subsequent filings with the SEC. While the list of factors discussed above and in the Form 20-F and other SEC filings are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realisation of forward-looking statements.
What is the partnership about between Arqit Quantum Inc. and Vayana TradeXchange?
The partnership aims to use Arqit's TradeSecure technology to transform international supply chains and enhance cross-border trade finance.
Which countries will be the initial focus of the partnership?
The initial focus will be on India, Singapore, UAE, and UK, nations known for their digitalization of trade.
What is the estimated size of the global supply chain finance market?
The market is estimated at $17 trillion and is growing at 3% per annum.
How does Arqit's technology benefit businesses?
Arqit's technology provides unique, referenceable, and transferable digital finance instruments that improve cash flows and access to liquidity.
What does Vayana TradeXchange offer in terms of trade finance?
Vayana TradeXchange revolutionizes cross-border trade finance by providing seamless working capital solutions across geographies.
