V Systems and PeerHive — participants in Malaysia’s SC regulatory sandbox — are piloting blockchain-based supply chain finance solutions. V Systems tokenises invoices to enable deep-tier financing backed by anchor buyer credit, while PeerHive uses smart contracts to automate P2P SME lending with stablecoins. Both operate under 12-month regulatory supervision. The initiatives address chronic gaps: limited SME access, manual bottlenecks, and double financing. For practitioners, benefits include extended supply chain visibility, programmable working capital, and automated compliance.
According to www.klsescreener.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 deploying blockchain-based supply chain financing solutions under 12-month regulatory supervision. Both operate under the sandbox’s alternative financing track, with V Systems partnering with one of Malaysia’s largest local banks and PeerHive testing a decentralised peer-to-peer (P2P) protocol using smart contracts and stablecoins.
V Systems: Tokenising Receivables for Deep-Tier Access
V Systems’ platform tokenises confirmed invoices on-chain, transforming them into digital assets backed by the anchor buyer’s creditworthiness — not the supplier’s. When a buyer confirms an invoice due in, say, three months, the supplier receives a blockchain-verified token for the full amount (e.g., RM100,000). This token is immutable, traceable, and prevents double financing — a persistent industry risk.
The solution enables partial drawdowns: suppliers can access liquidity in tranches up to the full invoice value, with each drawdown recorded on-chain. Crucially, tokens can be transferred down the supply chain — from Tier 1 to Tier 3 or beyond — allowing even logistics providers or small retail shops to borrow at rates tied to the anchor buyer’s credit, not their own limited financial history.
A key innovation is the liquidity pool, open to corporate treasuries, investment funds, and family offices — initially capped at fewer than 10 participants during the sandbox. Unlike traditional early-payment programs where buyers discount invoices (e.g., paying RM90,000 instead of RM100,000), this model preserves the full purchase value in the buyer’s accounts while delivering returns to investors.
“We work with the banks to lay out the infrastructure — financing the buyer and supplier, writing all the bank credit lines to start off with. In a few months, we will start building the liquidity pool. That’s where we look at how we can approach the whole financing, not just riding on a bank’s product.” — Goh Yuen Khai, CEO, Virtual Economy Technology Sdn Bhd
PeerHive: Smart Contracts Replace Trustees in SME Lending
PeerHive is developing a decentralised P2P financing protocol that eliminates the traditional trustee model. Instead, smart contracts automate loan origination, servicing, and repayment using stablecoins. Investors fund SME loans directly; repayments — including principal and interest — are executed automatically upon maturity without intermediaries.
This model targets transparency, speed, and cost reduction — particularly for SMEs historically excluded from formal credit due to documentation gaps or lack of collateral. By operating under SC Malaysia’s sandbox, PeerHive aims to secure a full Recognised Market Operator (RMO) licence post-pilot.
Industry Context & Practitioner Implications
Supply chain finance (SCF) is not new: global SCF volume reached $5.1 trillion in 2023 (Trade Finance Global), yet adoption remains shallow — only 15–20% of eligible invoices are financed, and fewer than 10% of Tier 2+ suppliers gain access (World Bank, 2024). Manual processes, fragmented data, and reconciliation delays have long constrained scalability. V Systems’ tokenisation directly addresses these bottlenecks: a 2023 McKinsey study found blockchain-enabled SCF reduced invoice verification time by 70% and cut dispute resolution cycles by 65%.
For supply chain professionals, the implications are operational and strategic. First, visibility extends beyond Tier 1: real-time tracking of token movement enables proactive risk monitoring across multi-tier networks. Second, working capital optimisation shifts from bilateral negotiations to programmable finance — e.g., treasury teams can allocate idle cash into vetted liquidity pools with predictable returns and audit-ready settlement trails. Third, compliance becomes automated: on-chain records satisfy KYC, AML, and audit requirements without manual re-entry. Notably, both platforms align with Malaysia’s National Financial Inclusion Strategy and ASEAN’s push for cross-border digital trade corridors — a context reinforced by Bank Negara Malaysia’s 2025 Digital Assets Framework.
Source: www.klsescreener.com
Compiled from international media by the SCI.AI editorial team.
