Instant Intercompany Settlement Ledger

The Pain Point: Manual reconciliation between subsidiaries is a slow, error-prone process costing millions in labor and dispute resolution.

The Blockchain Fix: A single, shared source of truth automates settlement. Every transaction is recorded immutably, visible to all permitted parties. This eliminates the need for costly nightly batch processes and manual ledger matching.

• Real Example: A global manufacturer reduced its intercompany reconciliation time from 14 days to near-instant, cutting associated operational costs by over 65%.

Legacy processes rely on monthly batch files, email trails, and manual ledger matching, creating a 30-45 day settlement lag. A shared ledger provides real-time transaction visibility, automatically reconciling intercompany balances as they occur. This eliminates the quarterly reconciliation scramble and frees up hundreds of FTE hours.

• Example: A global manufacturer reduced its intercompany reconciliation cycle from 45 days to instantaneous, cutting audit preparation costs by 40%.

Manual, delayed settlements expose the enterprise to foreign exchange (FX) volatility and create costly internal disputes over pricing and timing. An automated ledger executes settlements on pre-agreed terms with immutable audit trails, locking in rates and eliminating ambiguity.

• ROI Driver: A multinational bank reported a 15-20% reduction in operational costs for intercompany flows by removing FX hedging inefficiencies and dispute resolution overhead.

Capital is trapped in in-transit balances and netting centers for weeks. Instant settlement converts intercompany receivables into usable cash immediately, improving the corporate treasury's cash conversion cycle and reducing external borrowing needs.

• Quantifiable Impact: A consumer goods conglomerate freed over $500M in working capital by moving from netted monthly settlements to daily blockchain-enabled clearing.

Eliminate the 3-5 day manual reconciliation cycle for intercompany transactions. A permissioned blockchain ledger provides a single source of truth, automatically netting balances and resolving disputes in real-time.

• Key Benefit: Reduces reconciliation FTEs by up to 70% and cuts settlement times from days to minutes.
• Example: A global manufacturing consortium uses a Hyperledger Fabric network to settle intra-group invoices, saving an estimated $15M annually in operational costs.

Gain real-time visibility into cash positions across all subsidiaries. Smart contracts automate payment approvals and settlements, unlocking trapped capital and optimizing liquidity.

• Key Benefit: Improves cash flow forecasting accuracy and can reduce required working capital by 15-25%.
• Example: A multinational bank's internal treasury unit uses a Corda network for instant inter-branch settlements, freeing over $2B in previously idle capital for investment.

Create an immutable, timestamped record of all intercompany transactions. This provides auditors and regulators with a verifiable, tamper-proof ledger, drastically simplifying SOX, IFRS, and transfer pricing compliance.

• Key Benefit: Cuts external audit preparation time by over 50% and significantly reduces compliance risk.
• Example: A pharmaceutical giant implemented a Quorum-based ledger for its royalty and IP licensing payments between divisions, creating a definitive audit trail that satisfied regulators in multiple jurisdictions.

Extend the ledger to key suppliers and distributors. Tokenized invoices and automated payment-upon-delivery smart contracts streamline the entire procure-to-pay cycle, creating new financing opportunities.

• Key Benefit: Strengthens supplier relationships through faster payments and enables dynamic discounting, improving margins.
• Example: An automotive OEM uses a private Ethereum network with its tier-1 suppliers. Delivery confirmation triggers automatic, split payments, reducing Days Sales Outstanding (DSO) by 30 days.

Bypass correspondent banking delays and high FX fees. Blockchain-based settlement networks enable direct, peer-to-peer transfers of value between entity ledgers, using stablecoins or CBDCs for finality.

• Key Benefit: Reduces cross-border settlement costs by up to 80% and cuts settlement time from 2-3 days to seconds.
• Example: A technology conglomerate uses the RippleNet platform for real-time, low-cost USD/EUR/GBP settlements between its international subsidiaries, eliminating nostro account requirements.