B2B Payments

Blockchain SME Finance Firm Debitum Preps For Launch

Debitum Network is readying to be the newest blockchain-powered small business lending platform on the market.

The company is set to launch its solution in less than two weeks, on Sept. 3, reports in Busiweek said on Wednesday (Aug. 22). Debitum, based in Lithuania, aims to reach investors from across the globe that, once authenticated, can begin immediately investing in short-term small business loans.

Blockchain and smart contract technology provide security to financing transactions, which are made public, the company explains on its website. Investors can finance an array of loan products, including factoring, business loans, guarantees and stock.

Users can make investments, withdrawals and deposits in both fiat and cryptocurrency. The company’s proprietary cryptocurrency, DEB, is used to pay for services on the Debitum platform.

In addition to investors and small business borrowers, third-party service providers can join the platform to participate in the process by offering risk mitigation, debt collection, insurance and other tools.

Other alternative small business lenders are integrating blockchain into their offerings. Last year, Populous launched in the U.K., using distributed ledger technology and smart contracts to facilitate invoice financing for small businesses.

In France, BNP Paribas, Société Générale and other financial services players created Liquidshare, a consortium aimed at exploring the use of blockchain in the small business lending arena.

“With the launch of Liquidshare, we will use the great potential of the blockchain technology to become a key player in the post-trade industry,” the group’s CEO Thibaud de Maintenant said in a statement. “Supported by shareholders across the European financial market ecosystem, this initiative is the first of its kind.”

Société Générale, along with Deutsche Bank, HSBC and others, is part of another blockchain consortium, the Digital Trade Chain Consortium, which deploys IBM’s blockchain technology for use in cross-border and domestic small business payments.



The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.