V Systems and PeerHive — two participants in Malaysia’s SC regulatory sandbox — are piloting blockchain-based supply chain finance solutions. V Systems tokenises invoices to enable deep-tier financing and a liquidity pool for corporates and funds; PeerHive uses smart contracts to automate P2P SME lending with stablecoins. Both operate under 12-month regulatory supervision. These models aim to reduce manual bottlenecks, prevent double financing, preserve buyer accounting integrity, and expand credit access for SMEs beyond first-tier suppliers — addressing a gap where an estimated 70% of global trade finance demand remains unmet.
According to theedgemalaysia.com, Virtual Economy Technology Sdn Bhd (V Systems) and PeerHive (M) Tech Sdn Bhd — two participants in the Securities Commission (SC) Malaysia’s inaugural regulatory sandbox — are developing blockchain-based supply chain financing solutions aimed at expanding credit access for SMEs and unlocking new investment avenues for institutional capital.
V Systems’ Tokenised Receivables Platform
V Systems is building a blockchain-based supply chain financing platform in collaboration with one of Malaysia’s largest local banks. The solution tokenises confirmed invoices on-chain, converting them into digital assets backed by the anchor buyer’s creditworthiness. A supplier owed Rm100,000 with payment due in three months receives a blockchain-issued token representing that full amount and maturity date. The buyer’s acknowledgement is immutably recorded, preventing double financing.
This tokenisation enables partial drawdowns — suppliers can access tranches of funding as needed, up to the invoice value — and supports multi-tier transferability. As CEO Goh Yuen Khai explains:
“Historically, you can’t do deep-tier transfers as every transfer has to be recorded, and banks simply can’t handle that manually. But once you put it on a token, it can move around automatically. Financing is based on the buyer’s risk, not the supplier’s, and it’s not only single tier. This can go multi-multi-tier, all the way down to a logistics guy or a small retail shop.” — Goh Yuen Khai, CEO, V Systems
The platform includes a liquidity pool open to corporate treasuries, investment funds, and family offices — initially capped at fewer than 10 participants during the 12-month sandbox period. Unlike traditional early-payment programs — where buyers discount invoices (e.g., paying Rm90,000 instead of Rm100,000) and erode their own cost-of-goods-sold — this model preserves full invoice value in buyer accounts while delivering returns to external investors.
PeerHive’s Smart Contract–Driven P2P Lending
PeerHive is testing a decentralised peer-to-peer financing protocol under the same SC sandbox, targeting SME loans funded via stablecoins. Its core innovation replaces the traditional trustee model with dedicated smart contracts governing each investment note. These contracts automatically calculate and distribute principal and interest to investors upon borrower repayment — with full on-chain transparency on fund flows and borrower identity.
CEO and co-founder Vincent Yeo states the protocol eliminates intermediary costs, ensuring more interest paid by borrowers reaches investors directly. PeerHive aims to secure a full Recognised Market Operator (RMO) licence from the SC after sandbox completion.
Regulatory Context & Industry Relevance
Both platforms operate under the SC Malaysia’s alternative financing track, granted approximately 12 months to deploy and assess their models under regulatory supervision. This aligns with broader regional momentum: Singapore’s MAS has approved similar blockchain trade finance pilots via Project Ubin, while the Hong Kong Monetary Authority launched a trade finance platform (eTradeConnect) now used by over 30 banks. Globally, the World Bank estimates 70% of global trade finance remains unmet, with SMEs disproportionately excluded — especially beyond first-tier suppliers. Traditional supply chain finance typically reaches only 15–20% of eligible SMEs, per IMF 2023 data. By enabling programmable, auditable, and transferable receivables, these Malaysian initiatives address long-standing bottlenecks: manual reconciliation, opacity, and structural exclusion of deep-tier suppliers. For supply chain professionals, the implications are operational and strategic: real-time visibility into receivable status across tiers, reduced counterparty risk through immutable confirmation, and new options for working capital optimisation — both for buyers seeking cost-efficient supplier support and for treasury teams allocating idle cash into yield-bearing, low-volatility assets tied to verified trade flows.
Source: theedgemalaysia.com
Compiled from international media by the SCI.AI editorial team.
