V Systems and PeerHive have entered Malaysia’s SC regulatory sandbox to pilot blockchain-based supply chain finance solutions for 12 months. V Systems tokenises invoices on-chain to enable deep-tier financing and fractional draws, partnering with a top Malaysian bank. PeerHive uses smart contracts to power P2P SME lending in stablecoin, bypassing trustees. Both aim to expand SME access, improve transparency, and reduce financing costs — with implications for treasury operations, working capital management, and supply chain resilience.
According to theedgemalaysia.com, Virtual Economy Technology Sdn Bhd (developer of V Systems) and PeerHive (M) Tech Sdn Bhd have entered the Securities Commission (SC) Malaysia’s inaugural regulatory sandbox under the alternative financing track, with a 12-month window to deploy and assess their blockchain-based supply chain finance solutions under regulatory supervision.
V Systems: Tokenised Receivables for Deep-Tier Financing
V Systems is building a blockchain platform in collaboration with one of the largest local Malaysian banks — a Memorandum of Understanding is expected to be signed shortly. The platform tokenises confirmed invoices on-chain, transforming 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 claim and maturity date.
This design prevents double financing: once an invoice is uploaded and acknowledged by the buyer, the record is immutable and visible to all participating financial institutions. Crucially, the token can be fractionally drawn down — allowing suppliers to access liquidity in tranches aligned with cash flow needs — and transferred across multiple tiers of the supply chain. As CEO Goh Yuen Khai explains:
“You put it into our platform, we put it on blockchain, then we send this token to the supplier with the maturity date according to the invoice… Once it’s on the blockchain, you know there will be no more additional [issuance against the same invoice].” — Goh Yuen Khai, CEO, V Systems
The platform also introduces a 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 discounts — where a buyer pays RM90,000 instead of RM100,000 and records a lower cost of goods sold — investors in the pool fund the supplier while the buyer still pays the full invoice amount at maturity. This preserves accounting integrity and shifts financing risk from the buyer’s balance sheet to diversified capital sources.
PeerHive: Smart Contract–Driven P2P Lending with Stablecoins
PeerHive is testing a decentralised peer-to-peer (P2P) financing protocol that replaces the traditional trustee model with dedicated smart contracts for each investment note. Borrowers — primarily SMEs — receive funding in stablecoin, and repayments are automatically routed to investors via programmable logic, eliminating intermediary fees and increasing yield efficiency. The company aims to secure a full Recognised Market Operator (RMO) licence from the SC upon successful sandbox completion.
CEO and co-founder Vincent Yeo states the protocol ensures “more interest paid by the borrowers goes directly to the investors” — a structural improvement over conventional P2P platforms reliant on custodial trustees.
Industry Context & Practitioner Implications
Supply chain finance (SCF) is not new, but its reach has long been constrained: less than 15% of global trade receivables are financed, and fewer than 20% of Tier-2+ suppliers gain access, per World Bank and IMF data (2023–24). Manual processes, siloed ERP systems, and lack of verifiable invoice provenance have hindered scalability. V Systems’ approach aligns with recent moves by HSBC (via WeTrade), Standard Chartered (with Contour), and J.P. Morgan (Onyx), all piloting blockchain-enabled SCF — though none yet permit multi-tier token transfers or stablecoin settlement at scale in ASEAN regulatory frameworks.
For supply chain professionals, these developments signal tangible near-term shifts: reduced working capital strain for SMEs, enhanced visibility into receivables across tiers, and new treasury deployment options beyond commercial paper. However, adoption hinges on anchor buyer participation, ERP integration readiness, and clarity on tax treatment of tokenised assets — all actively assessed during the 12-month sandbox period.
Source: theedgemalaysia.com
Compiled from international media by the SCI.AI editorial team.
