VeChain has executed the first blockchain-based NFT transaction to monetize inventory.
VeChain, a well-known blockchain firm, recently issued an NFT with a market value of approximately €1.5 million ($1,558,500) as part of an initiative to enable companies to raise capital without incurring debt by monetizing inventory on the blockchain. This development represents a significant step forward in the blockchain’s partnership with Supply@ME.
The blockchain network announced the achievement on Twitter.
ICYMI: We recently minted an #NFT worth €1.5million, representing actual inventory of an Italian automobile company.#VeChain & @SupplyMECapital are building new capital-raising models without debt & unleashing the power of NFT tech.$VET = Revolution.https://t.co/rvyHtxtnXD
— VeChain Foundation (@vechainofficial) November 28, 2022
According to the tweet, the NFT represents the inventory of an Italian automobile company. The transaction took place at the end of October.
The innovation is the world’s first and introduces a new form of capital access in the supply chain for manufacturing and trading companies, as well as a new asset class for investors. The transaction will greatly improve cash flow and working capital access for a company that designs and produces industrial and specialized vehicles in Italy, the United States, and Africa.
Sunny Lu, CEO of VeChain Foundation, said in a statement:
“By deploying this, our companies together are able to limit a need for overproduction, promote sustainable global development, improve cashflow for businesses and create a new digital asset class which provides capital directly to the real economy. We look forward to launching – phase 2 of our alliance to involve our community and the rest of the crypto market into this disruptive initiative”.
According to a report, the next stage of the partnership between Supply@ME and VeChain will begin in the upcoming months, with additional Inventory Monetization transactions budgeted up to USD8.5 million, also funded by VeChain as an anchor investor, along with multiple liquidity providers including VeChain ecosystem stakeholders, additional cryptocurrency asset managers, and direct investors through partnerships with liquidity pools.
Alessandro Zamboni, CEO at Supply@ME said:
“Our Inventory Monetisation facility offers a new, more cost-effective alternative for businesses to free up significant levels of working capital. In VeChain, we have found the ideal, visionary partner to progress this path using digital assets and we are look forward to offering access to this vast new market to more investors.”
The fact that this service is being implemented on the VeChain network demonstrates how adaptable the enterprise chain is, as it has been in the use of supply chain provenance in other industries.
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