Pelago announced an integration with the Stellar network to support the development of its crypto-enabled supply chain financing platform, which unlocks pre-settlement liquidity for suppliers.
Pelago’s supply chain financing platform is built on Stellar, leveraging its native smart contract platform. The solution tokenizes and fractionalizes the account receivables of accredited buyers, creating smaller, supplier-specific representations—even for suppliers without direct contact with the end buyer. These digital certificates empower suppliers to secure the working capital they need, backed by the buyer’s credit, ensuring seamless order fulfillment and improved cash flow efficiency.
Suppliers can settle funds accessed through the platform in USDC on Stellar, via PolyFlow’s liquidity-pool based payment channel. Alternatively, funds can be settled through off-ramps to local currencies via authorized providers. The supply chain financing platform also integrates an on-chain KYC system built by PolyFlow, as well as an enterprise grade wallet.
“This innovative solution demonstrates the practical utility of the Stellar network and USDC in facilitating real-world working capital lending. Pelago and Polyflow will work together to enable SMEs to access decentralized financial solutions that eliminate liquidity constraints and streamline their access to working capital.” said Raymond Qu, co-founder of PolyFlow. “Smart contracts on Stellar enable efficient scaling and the ability to handle intricate business models. These attributes make smart contracts on Stellar a great toolset with which to build Pelago’s Supply Chain Financing Solution”.
This month, a creditor with a facility exceeding $1 million USDC has been successfully deployed and utilized on the Pelago SCF Platform. This milestone has directly helped three suppliers overcome cash flow challenges by providing them with faster access to working capital. By leveraging on-chain credit, these businesses have secured funding ahead of buyer payments, ensuring smoother operations and financial stability. Pelago remains committed to revolutionizing supply chain finance by enabling crypto-backed lending for real-world businesses. Through our platform, creditors can deploy digital assets to support small and medium-sized enterprises (SMEs), while suppliers gain seamless access to funding without the traditional banking hurdles.
The Stellar Development Foundation’s mission is to provide more equitable access to the global financial system via Stellar, a low-cost, high-security transaction network that permits trading in digital assets while integrating seamlessly with the traditional economy.
“The power of blockchain technology to transform the future of finance is on full display with Pelago’s crypto-enabled supply chain financing platform, said Denelle Dixon, CEO & Executive Director of the Stellar Development Foundation. “Giving small and medium-sized enterprises access to credit and liquidity onchain will unlock economic opportunities and drive adoption.
Pelago Labs
Pelago Labs, based in Vancouver, Canada, is a leading financial technology provider specializing in innovative payment solutions. With a strong regulatory foundation, the company collaborates with licensed institutions to ensure compliance and security. Its expertise spans both traditional (Web2) and blockchain-based (Web3) financial solutions, enabling businesses to optimize payment processes and seamlessly integrate conventional finance with emerging blockchain innovations.
The Stellar Network
The Stellar network is a decentralized, fast, scalable, and uniquely sustainable blockchain built for financial products and services. It offers builders smart contracts functionality and a protocol optimized for payments, with a design intended to keep fees low and to provide transaction speeds that can scale with increased adoption. Financial institutions and innovators worldwide issue assets and settle payments on the Stellar network, which has processed billions of operations with millions of accounts since the network was first launched.