Silicon Valley startup Skuchain, which has been supported by investors such as Amino Capital, Digital Currency Group, and Fenbushi Capital, has announced that it is targeting the global trade finance market that still relies on paper documentation for the majority of its process, which it claims is worth 18 trillion dollars, including products like Letter of Credit ($2.3 Trillion) and Factoring ($3 Trillion).
Using blockchain technology, Skuchain aim to replace complex and cumbersome trade transactions which involving numerous entities including buyers, sellers, logistics providers, banks, customs, and other third parties. Lack of trust, long distance, and slow feedback loops add cost, complexity, and time to these transactions will also be improved with the addition of new technology. Skuchain have stated that they will use blockchain technology to remove the need for paper by offering a secure and digitized solution that can increase speed, decrease cost, and make financing available to small and medium sized businesses in locations where finance solutions were previously not accessible.
Barry Silbert, Founder and CEO of Digital Currency Group who have invested in Skuchain, stated: “Skuchain’s vision of building a “commerce cloud” where trade partners can interact friction-free and gain deep visibility into their supply chains is compelling. The Skuchain team and blockchain-enabled product is well-positioned to transform the trade finance space and DCG is thrilled to back such an ambitious effort.”
Co-founder and CEO of Skuchain, Sriram Srinivasan said: “Collaborative Commerce is the future of global trade. Skuchain’s blockchain technology will help trading partners work better together, and unlock faster and cheaper financing for businesses of all size.”
Srinivasan and Zaki Manian founded Skuchain. Srinivasan is a former ship captain and Wall Street technologist with previous startup experience; whereas Manian is a UPenn alum, security expert, and well-known cryptoengineer. Other team members include Stanford and MIT alums, with previous successful startup exits and more than 30 patents issued.