The agreement opens the door for Alibaba customer base to access new markets and find new partners through the ModulTrade Platform (MTP). ModulTrade operates an order matching, payment and tracking system, using smart contracts on the ethereum blockchain. The system provides transparency and payment certainty without the need for letters of credit or bank guarantees.

The MTP has been designed for use by SMEs and is fully scalable across desktop, tablet and mobile devices and empowers businesses to create, join and manage supply chains knowing that counterparty risk has been removed through the use of the ModulTrade token – the MTRc.

Market participants conduct all business using the MTRc token, which acts to provide proof of funds and support trust across the ecosystem. The use of tokens to support trade and trade finance flows is a significant innovation within the fintech sector and as a result, the agreement is likely to gain greater traction both in Asia and Europe.

Alibaba and ModulTrade will collaborate to support the process of education on the platform and the use of the token, will open a dedicated office in China in Q2 2018, expanding the ModulTrade network of offices in Singapore, Russia and the UK.

ModulTrade are currently concluding a token sale as part of their wider go to market strategy.