Problem 1: Existing Payment Mechanisms are Inefficient
Increasing costs of doing business and depressing consumption growth, which has not been strong enough to absorb excess production, are forcing smaller players throughout the supply chain out of the market. International payment solutions offered by banks and other payment service providers are delayed and expensive in terms of operational and transaction costs. The small and medium scale companies are charged interest either by the counter companies or private financial institutions that only confirm the payment within 48-72 hours. For the big corporates, it’s the same case as the interest is levied by traditional financial institutions like banks.
Solution 1: Corporate Payments Platform (“PayCircle”)
PayCircle is a decentralized payment application for individuals and businesses. PayCircle allows individuals & businesses to Custody, Send & Receive multi-currency (USD/AUD/CAD/EUR/JPY) Fiat and Digital assets (BTC, ETH, ERC20) based tokens and stable coins like USDT) 24*7 and 365 days. Utilizing blockchain as a technological infrastructure PayCircle allows relatively speedy and low-cost transaction settlements. PayCircle ensures enhanced security of the financial contracts and facilitates contract automation utilizing blockchain immutability. PayCircle forges a bond of reliability through advanced visibility of the transactions while guaranteeing zero payment failure. PayCircle users remain in absolute control of their assets without any interference from any intermediary through complete possession of their private keys within the PayCircle ecosystem.
Problem 2: Lack of Access to Financing
According to the World Federation of Diamond Bourses (WFDB), financing by banks to the global diamond industry shrank by US$3 billion from 2017 to 2018 as banks started to demand greater transparency, higher collateral security, and extensive documentation. Lack of capital leads to reduced cash flow, which is a major problem facing the diamond industry, particularly for diamond traders who must have the capability to hold a large stock of diamonds. The entire diamond pipeline is being compelled to adjust their mode of business and operations as billions of dollars are removed from the industry.
Solution 2: Corporate Finance Platform (“CreditCircle”)
CreditCircle is a DeFi finance product on Diamante Net. It’s a decentralized finance application where individuals and businesses can opt for receiving loans and credit at a relatively low-interest rate compared to traditional financing.
Users can escrow their stocks, bonds, luxury commodities, and digital assets to avail of financing. CreditCircle enables peer-to-peer (p2p) lending, where individuals and financing institutions from around the world can get access to a large number of customers globally.
One of the biggest problems threatening the diamond industry is the lack of access to financing, which is forcing several players, especially smaller producers, manufacturers, and traders, to adjust their mode of business and operations in order to compete. To solve this, the Diamante platform will offer its members the opportunity to obtain a line credit once approved by the consortium.
The Diamante consortium platform will allow members to access credit in a number of ways. In the first instance, consortium members will be able to apply for a credit facility directly from Diamante. In addition to Diamante providing credit to consortium members, traditional lenders and credit providers such as banks will be able to access the Diamante platform by paying a platform fee, which will, in turn, allow them to access data and connect with potential borrowers directly.
Diamante would have two financing options, one being a peer-to-peer (p2p) lending platform, and the other is asset-backed financing.
Members’ credit ratings will be mapped using high-end technical and financial algorithms that will assist the consortium in approving the line of credit to its members. Before issuing the line of credit to the specific consortium member, diamonds would be used as a means of collateral, which would be secured from the individuals seeking the credit.
Diamante has a concept of asset-backed financing where diamonds would be used as an asset that would act as collateral. For example, if a company is in a cash crunch and requires a credit of $1 million, the company would place $2 million worth of diamonds on to a 3rd party safe deposit vault, which would be valued by the Diamante appraisal team. All these transactions would be recorded via smart contracts on to the Diamantes network, i.e., Diamante Net.