Beyond the Cryptocurrency realm, Blockchain technology is gaining traction. Many industries are starting to depend on Distributed Ledger Technology as the next best option for securing and organizing data.
According to Adjoint CEO Havell Rodrigues, the same data technology can be adopted in treasury management practices. The solutions include liquidity management and reconciliation of transactions that are often affected by errors in manual handling with far-reaching consequences.
Corporate Finance Technology Has Not Changed For Decades
Adjoint is a platform that provides Blockchain technology solutions for treasury management. The firm uses Smart Contracts that are native to Ethereum to manage and coordinate the financing of different corporate activities.
Havell notes that the general economy is transitioning from the 9 am to 6 pm traditional operations to a 24/7 state due to emerging needs and rent-seeking behaviors in firms. However, corporate financing has not been able to receive the necessary adjustments required for always-on-demand functionality. In fact, the treasury area has not changed significantly over the last 20 years and a technology that is flexible and dynamic is needed to overhaul this area.
Blockchain Technology Is Ideal For Globalization And International Trade
The CEO reveals that DLT has the capacity to solve problems such as cutoff times for various markets and time zone/region limitations for companies so that they can have a presence in the global scene. Therefore, Blockchain technology is fundamental to international trade.
Moreover, Blockchain technology can be useful in moving financial transactions from emails, PDFs, and Excel files that are always at the risk of being hacked.
Havell also notes that DLT can facilitate real-time cash management and allow all parties to access the harmonized pool of validated data.
The CEO is assuring all potential clients that Blockchain technology is a distributed database that is also secure, and immutable as well as customizable for different use-cases.
Adjoint Is Offering Blockchain Solutions
For different firms that want to deploy a dynamic technology in their operations, Adjoint has its Blockchain services dubbed as Adjoint Smart Treasury for real-time treasury management. The new service was implemented in early March 2019 is an overlay that pushes and pulls data from connected enterprise systems and synchronizes them with hybrid treasury management systems.
Other capabilities of the new Blockchain platform include; calculating accrued interest, generating a SWIFT international transfer, generating invoices for loan payment, timestamping data, and even cross auditing a set of records to determine their accuracy for reconciling data.
The functionality of the Blockchain solution in treasury management also extends to managing supply chains that are the lifeline of some enterprises. Current systems are disjointed and prone to delays but DLT can manage data and also generate accompanying reports needed by stakeholders.
Adjoint Smart Treasury also improves risk management through smart-contract permissions and data redundancy. The latter guarantees that there is no single point of failure while guaranteeing that there is no downtime in case a node fails. On the other hand, permissions are vital in only allowing necessary access to information to maintain internal independence and separation of departments.