dexFreight, a FinTech-enabled logistics market network powered by smart contracts, has been granted a USPTO patent (Patent No.: US 11615375 B2) for its innovative method for electronic management of supply chain factoring with shared state storage in a distributed ledger.
The U.S. Patent and Trademark Office awarded the patent on March 28, 2023, with the company's co-founders Adrian Giannini, Rajat Rajbhandari, Hector Hernandez, Ricardo Escobar, Jim Handoush, and advisor Renat Khasanshyn, credited as the inventors.
The multi-billion dollar supply chain management industry is crucial for all businesses involved in the production and distribution of goods. This industry includes suppliers, manufacturers, logistics companies, transportation providers, and retailers who are responsible for getting the product to the end consumer. Factoring is a financing option that many supply chain actors use to cover their immediate expenses in this cash flow-intensive process. dexFreight has developed a new technology that allows supply chain invoices to be turned into digital tokens using a distributed ledger system. These tokens have a lower risk profile and can be used to obtain liquidity from decentralized pools through an automated process. This results in quicker transactions and lower financing fees for users as an alternative to traditional factoring.
"This patent represents an exciting opportunity to bring DeFi to the supply chain industry on a global scale," said Rajat Rajbhandari, CTO/CIO of dexFreight. With this patent, dexFreight aims to facilitate lower-cost access to liquidity for small and medium size trucking companies in the US and abroad. For instance, in the trucking industry, drivers often have to wait for 30-45 days to receive payment for delivering a load. dexFreight's innovative solution will usher in a new era of cheaper, faster, auditable, and traceable transactions in the supply chain industry.
dexFreight's groundbreaking invention is a game-changer for the supply chain industry, providing a novel solution to the challenges that companies face in managing their cash flow.