Singapore fintech firm launches blockchain-based lending platform for SMEs

The bitcoin, a cryptocurrency attempting to replace the traditional money system, has been scaling new heights over the past few weeks. It is powered by blockchain technology, whose market is poised to hit US$39.7 billion by 2025.

Bitcoin is a decentralized financing platform that operates outside established channels and dispenses money without the need of an endorsement from any central authority or financial institution. However, there has to be trust between the two or more people using it for transactions.

Singapore-based ShuttleOne is building a similar cryptocurrency platform, but without the requirement of trust between two parties.

ShuttleOne founder Hongzhuang Lim/ Photo credit: ShuttleOne

Founded in 2019, ShuttleOne is a fintech company that uses blockchain technology to help informal workers remit money at a lower transfer fee and in a more transparent manner. It also helps small and medium enterprises (SMEs) connect with licensed money service providers and provides real-time settlement of cross-border money transfer services.

Launched in September 2020, ShuttleOne Network provides digital lending and remittance services to SMEs in Southeast Asia but without the need of a password.

It ensures security on the platform through its proprietary cryptographic methodology, which secures the accounts that are using the blockchain technology by making sure that the “highest level of encryption” are tied to the users’ phone numbers or emails, ShuttleOne’s founder and CEO, Hongzhuang Lim tells Tech in Asia.

To understand the profiles of the SMEs it is looking to serve, the company will partner with banks, which can then provide credit to the end consumers.

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The startup was founded by Lim, a former Goldman Sachs employee, who wants to tackle a three-pronged problem in public blockchains: higher security, scalability, and affordability. These problems are especially evident in the Ethereum cryptocurrency platform.

To solve this, the company is using the Tezos blockchain platform, where all stakeholders can participate in network upgrades by proposing, approving, or evaluating amendments. The peer-to-peer layer confirms that communication between nodes are encrypted and authenticated for security, safety, and reliability.

“When we presented the prototype to the engineers of our partners, they initially found a financing solution without the use of passwords hard to understand,” Lim says.

But the Tezos blockchain platform provides a better alternative to the “congested” Ethereum platform since it can tackle the abovementioned problems, he adds.

It also addresses barriers in blockchain adoption through open participation, long-term upgradability, and smart contract safety.