Hello everyone. I'd like to explain the partnership between Vechain and Supply@me Capital #SYME a little more.
31 Jul 2022, 16:45
Hello everyone. I'd like to explain the partnership between Vechain and Supply@me Capital #SYME a little more.
#SYME monetise inventory for SME's. They've created a completely new asset class and thanks to the power of Blockchain and tokenisation, the transaction is classified as a true sale. It's not a loan.
SME's struggle to secure capital to grow. They often have very large inventory quantities that are essentially sat doing nothing in warehouses for months on end. #SYME model allows these companies to tap in to the value of the inventory, before it is sold on to a buyer or moves through the supply chain.
Essentially what occurs is that the inventory is tokenised and added to a Blockchain. That inventory is then purchased by a funder. Bank, institutional investor, pension fund, etc.
They (funder) are now the legal owner. But the inventory remains on site. When the SME is ready to sell the inventory (months later) they purchase it back off the funder for a premium. 6-8% more than they received for it.
This enables the SME to unlock capital at times they typically would not have so much during the financial year. Enabling them to invest that capital in whatever way benefits the business.
The market for this is enormous. In the trillions. This new asset class will give legitimacy to crypto currencies like nothing else.
#SYME already have a portfolio of clients with inventory they seek to monetise, worth in excess of $1.5bn.
The model is also a 3 year contract. So the total current worth is over $4.5bn.
VeChain and #SYME will work on more projects in the future. There are many possibilities. One such example being every car that comes off a production line, being tokenised and monetised. Smart contract installed. Therefore everytime that vehicle is resold through the used car market, the manufacturer would receive 10% of the value of that transaction.
This partnership could lead to both Vechain and SYME increasing in value significantly.
My advice would be to invest in both.