Germany-based supply chain finance platform provider Traxpay has entered into a collaboration agreement with UK-based digital financial instruments encryption company Arqit Quantum . The aim is to give all players along the supply chain the opportunity to process their commercial transactions more securely.

Arqit's TradeSecure service is directly integrated with Traxpay's 360° supply chain finance platform. The partners’ technology Arqit uses distributed ledger technology to provide clients with digital financial instruments (for example, in the form of a digital bill of exchange) that are transferrable, immutable, and easier to manage than paper-based alternatives. Arqit's QuantumCloud™ symmetric encryption software provides Traxpay's customers with proven quantum-proof encryption for digital assets, protecting them from current and future cyber threats.

Need for security from cyber attacks The digitisation of world trade enables faster international goods traffic. However, this also makes global trade more vulnerable to cybersecurity attacks. The arrival of quantum computing and “store now, decrypt later” attacks further exacerbates these risks, highlighting the need for quantum-proof digital financial tools.

By providing a verifiable digital original and a unique identifying seal, Arqit digital financing instruments cannot be tampered with, creating a secure means of payment for goods or services that any party in the supply chain can use to complete commercial transactions. At the same time, the efficiency of the supply chain is increased through fast transaction times and secure transferability of digital financial instruments. Launch in 2023 The commercial product is currently in the testing phase and is expected to be launched globally in 2023 once the relevant legislation is in place.

According to a Traxpay representative, Arqit's technology is highly compatible with their supply chain finance ecosystem and is able to deliver uniquely identifiable, quantum-proof digital financial instruments. The partners are now able to develop new products for their customers that offer flexibility in liquidity management. Compliance with regulations An Arqit representative states that the company aims for the partnership to provide corporate customers and financial service providers with more secure access to finance.

They continue to explain that malicious actors will target global trade as it undergoes transformative digitisation and that quantum-proof digital financial instruments are needed to maintain trust in digital trading platforms and to protect against threats from both classical and quantum computing. Arqit’s technology complies with UNCITRAL's Model Law For Electronic Transferable Records (MLETR) provisions regarding identity, integrity, and control of Electronically Transferable Datasets met. .