Arqit and Traxpay Team on Secure Supply Chain Finance

Arqit Quantum and Traxpay are collaborating to help supply chain actors conduct business efficiently and securely.

With their signing of a contract, Arqit’s quantum-safe encryption is being deployed directly into Traxpay’s supply chain financing platform, the companies said in a Monday (Dec. 12) press release.

The agreement comes as the British government’s upcoming Electronic Trade Documents Bill will legalize electronic transferable documents, enabling the digitization of global trade and opening up a potential $17 trillion global market for supply chain finance, according to the release.

“We are delighted to be working with Traxpay to enable their corporate customers and banking partners to access finance more efficiently and securely,” Arqit Senior Vice President of Working Capital Technology Dominic Broom said in the release. “Malicious actors will undoubtedly target global trade as it undergoes transformative digitization.”

Arqit’s TradeSecure service, which uses distributed ledger technology to provide referenceable digital finance instruments, will be added to Traxpay’s platform that has processed over 65 billion euros (about $68.5 billion) of supply chain finance assets to date, according to the press release.

The full-scale commercial product is being tested and is expected to launch globally in 2023 once the enabling legislation comes into effect, the release said.

“Arqit’s technology is highly compatible with our supply chain finance ecosystem and uniquely capable of delivering clearly identifiable, quantum-safe digital finance instruments which are urgently needed in the digital trade era,” Traxpay Managing Director Markets and Sales Markus Wohlgeschaffen said in the release. “We are now able to create new products for our customers that allow an unrivalled level of flexibility in liquidity management, efficiency, transaction speed, cost reduction and, most importantly, the highest levels of security.”

The U.K. parliament passed the Electronic Trade Documents Bill Oct. 13, ending the legal requirement for certain business documents, such as bills of exchange, promissory notes, warehouse receipts, and marine and cargo insurance certificates, to be printed on paper.

As PYMNTS reported at the time, the government said the new law will provide a boost of 1.14 billion pounds (about $1.6 billion) to U.K. businesses over a 10-year period by reducing contract processing times and lowering administration costs.

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