Eliminate Manual Reconciliation with Blockchain

Replace paper-based Letters of Credit with smart contract-powered trade execution. Upon automated verification of shipping documents, payment is released instantly, eliminating the 5-10 day manual reconciliation and dispute cycle. This reduces operational costs by up to 80% and accelerates cash flow.

• Example: A global commodities trader reduced settlement time from 7 days to 4 hours.
• Key Benefit: Removes counterparty risk and manual document matching.

Tokenize invoices and purchase orders on a permissioned blockchain. All parties—buyer, supplier, financier—see the same, immutable transaction history. This automates invoice reconciliation and enables dynamic discounting and financing based on verifiable data.

• Example: A major automaker streamlined its multi-tier supplier payments, cutting reconciliation efforts by 70%.
• Key Benefit: Unlocks working capital by providing financiers with a trusted, real-time audit trail.

Streamline the post-trade lifecycle for securities financing. Smart contracts automate collateral management, margin calls, and interest calculations based on a shared record of ownership and obligations. This eliminates the daily manual reconciliation of positions and collateral values between counterparties.

• Example: A large custodian bank automated its repo operations, reducing failed trades and associated penalty costs by over 90%.
• Key Benefit: Drastically reduces operational risk and capital requirements tied to disputes.

Replace 5-10 day paper-based Letter of Credit processes with smart contract-enabled execution. Upon IoT sensor confirmation of goods arrival, payment is automatically released. This slashes settlement time to hours, reduces fraud, and improves working capital. Example: Komgo and we.trade have digitized commodity trade, cutting processing costs by up to 80%.

Eliminate month-end reconciliation nightmares between subsidiaries. A permissioned blockchain ledger provides a single, synchronized record for all intercompany transactions (loans, royalties, service charges). This ensures audit-ready compliance, reduces disputes, and cuts closing cycles from weeks to days. Major enterprises like SAP are integrating blockchain to solve this exact pain point.

Turn fragmented invoices and purchase orders into automated payment flows. Each shipment milestone recorded on-chain triggers the next payment via smart contract. This provides real-time liquidity for suppliers and perfect audit trails for buyers. Walmart's food traceability network demonstrates the model, enabling instant proof-of-delivery that can be directly linked to invoice settlement.

T+2 settlement is a legacy of manual reconciliation between brokers, custodians, and clearinghouses. A shared ledger allows for simultaneous update of asset ownership (Delivery vs. Payment - DvP), collapsing settlement to near-instant (T+0). The Australian Securities Exchange (ASX) is replacing its CHESS system with blockchain to achieve this, targeting a 30-40% reduction in back-office costs.

Automate the complex, manual process between insurers, reinsurers, and third parties after a claim. A blockchain records the claim, assessment, and payment agreements as a single version of truth. Smart contracts then automatically apportion and disburse funds, eliminating months of reconciliation. Consortiums like B3i are building these solutions to tackle the $200B+ reinsurance market.

Traditional trade finance involves reconciling documents across 20+ entities, causing weeks of delays. Blockchain creates a single, immutable ledger for purchase orders, bills of lading, and letters of credit. Key results:

• 70-80% reduction in document processing time (from 5-10 days to <24 hours).
• Elimination of duplicate financing fraud, a $50B annual problem.
• Automated payment triggers upon IoT sensor verification (e.g., container temperature). Example: Marco Polo Network, powered by R3 Corda, automates settlements for enterprises like BMW and Mitsubishi.

Correspondent banking relies on nostro/vostro accounts that require daily reconciliation, locking up capital. Blockchain enables direct peer-to-peer settlement with real-time transparency.

• Cost savings of 40-80% versus traditional SWIFT wire fees.
• Settlement in seconds, not days, improving working capital.
• Full audit trail for compliance (AML/KYC) baked into every transaction. Example: J.P. Morgan's JPM Coin settles over $1B daily for institutional clients, bypassing legacy reconciliation systems.

Post-trade settlement (T+2) is a manual, risk-laden process. Tokenization of assets and smart contract automation enable instantaneous settlement (T+0) and automatic corporate actions.

• Eliminates failed settlements, which cost the industry ~$3B annually.
• Reduces collateral requirements by billions via atomic delivery-vs-payment (DvP).
• Automates dividend/interest payments, cutting operational overhead. Example: The Australian Securities Exchange (ASX) is replacing its CHESS system with a blockchain-based solution for equity post-trade services.

Claims involve manual data entry and verification across insurers, repair shops, and regulators. A shared blockchain ledger creates a single version of truth for the claim lifecycle.

• Cuts claims processing time from weeks to minutes for simple claims.
• Drastically reduces fraudulent claims via immutable history, saving 5-10% of claims volume.
• Automates subrogation and reinsurance payouts between companies. Example: B3i (Blockchain Insurance Industry Initiative) uses distributed ledger technology to streamline property catastrophe excess-of-loss contracts.