Instant Cross-Border Guarantee Issuance

Traditional paper-based guarantees are slow and vulnerable to forgery. A blockchain-based digital guarantee is an immutable, cryptographically-secured token. This creates a single source of truth for all parties—issuing bank, beneficiary, and applicant—eliminating discrepancies and the risk of fraudulent documents. Real Example: A European bank pilot reduced document verification time from 5 days to real-time, cutting operational risk by an estimated 40%.

Every action on a blockchain guarantee—issuance, amendment, claim, expiry—is recorded on an immutable ledger. This provides a complete, timestamped audit trail that is transparent to authorized parties. It automates compliance with Know Your Customer (KYC), Anti-Money Laundering (AML), and sanctions checks, embedded directly into the issuance workflow. Benefit: Drastically reduces manual review workload and creates a verifiable record for regulators, simplifying annual audits.

Faster issuance means projects start sooner, improving capital efficiency for developers and contractors. Automated processes reduce back-office labor by up to 70% for standard guarantees. Furthermore, the transparency of blockchain enables dynamic guarantee products, like reducing guarantee amounts as project milestones are met, which frees up bank credit lines. ROI Driver: One Asian infrastructure consortium reported a 15% reduction in total guarantee-related costs within the first year.

Blockchain networks operate continuously. A contractor in Singapore can request a guarantee from a bank in London for a project in the UAE, and have it issued and verified within minutes, outside of any single jurisdiction's business hours. This breaks the geographic and temporal lock of traditional banking, accelerating global trade. Use Case: This is critical for commodities trading and large-scale infrastructure projects with international partners and tight deadlines.

Replace paper-based document verification with an immutable, shared ledger. This initial phase tackles the core pain point of manual reconciliation and fraud risk.

• Key Benefit: Creates a single source of truth for all parties (applicant, issuing bank, advising bank).
• Real Example: A European export bank reduced document verification time for Letters of Credit from 48 hours to under 10 minutes, cutting back-office labor by 70%.
• ROI Driver: Eliminates manual errors, reduces dispute resolution costs, and provides a clear compliance trail for regulators.

Integrate smart contracts to encode trade rules and compliance checks, enabling conditional, automatic guarantee issuance.

• Key Benefit: Automated sanctions screening and AML checks are executed against a permissioned, real-time data source before a guarantee is issued.
• Real Example: A pilot between Asian and Middle Eastern banks used smart contracts to auto-validate shipping milestones against IoT sensor data, triggering partial payments and reducing counterparty risk.
• ROI Driver: Drastically reduces compliance overhead, minimizes human-in-the-loop errors, and accelerates transaction velocity.

Connect to a network of validated counterparties and integrate with digital asset rails for instant, final settlement.

• Key Benefit: Unlocks programmable finance where guarantees can be funded, split, or traded as digital assets on a secondary market.
• Real Example: A global commodities trader used tokenized performance guarantees to secure inventory financing, improving their working capital cycle by 15 days.
• ROI Driver: Transforms guarantees from static documents into dynamic financial instruments, freeing up capital and creating new revenue streams.

Justify the investment with hard numbers focused on cost avoidance and capital efficiency.

• Cost Savings: Eliminate courier fees, manual processing ($50-200 per transaction), and reconciliation FTEs.
• Risk Reduction: Mitigate fraud losses and costly discrepancies that can stall multi-million dollar shipments.
• Capital Efficiency: Reduce collateral requirements and improve balance sheet metrics by converting guarantees into programmable assets.
• Bottom Line: A typical pilot shows a 12-18 month payback period, driven primarily by operational cost reduction and error elimination.