Tokenised Invoices

Deck: https://drive.google.com/file/d/15G4cKpTT8mheJdeHobG1Shd_RRADEFMw

Website: https://tokenised-bills.vercel.app/

The Tokenized Invoices is a next-generation financial infrastructure designed to unlock the billions in capital currently trapped in traditional B2B "Payment Terms". It achieves this by transforming static Payables and Receivables into programmable, liquid digital assets using blockchain-based smart contracts and Asset Pooling technology.

The project is structured into three distinct phases that turn raw invoice data into institutional-grade investment products.

Phase 1: The Digital Handshake (Asset Creation)

The process begins with a seamless digital verification that replaces traditional paper trails.

• Issuance: A Buyer (Debtor) issues an invoice within the system's Payables module as a digital payment request.

• Confirmation & Minting: Once the Supplier (Creditor) clicks "Confirm," a smart contract locks the obligation.

• Receivable Tokens: The system instantly mints a unique Receivable Token. This token represents a digital asset owned by the supplier, moving beyond a simple document to a tradeable instrument.

Phase 2: The Liquidity Engine (Financial Engineering)

This phase acts as a "factory" to process raw invoices into diversified products.

• Bundling: Suppliers can select multiple Receivable Tokens and consolidate them into a single "Asset Bundle" for easier management.

• Pooling: The system automatically aggregates these bundles from various suppliers into a massive Global Liquidity Pool. This provides diversification and scale, diluting risk across hundreds of different assets.

• 3-Tier Tranching: To maximize capital efficiency, an algorithm slices the pool into three layers based on risk appetite:

    ◦ Senior Tranche (The Shield): The largest container that fills first in the cash flow waterfall. It offers extremely low risk and stable returns (4%–6%), targeting conservative investors like banks.

    ◦ Mezzanine Tranche (The Bridge): Provides balanced risk and returns (7%–10%), appealing to hedge funds. It only suffers losses if the layer below it is entirely wiped out.

    ◦ Junior/Equity Tranche (The Buffer): Acts as first-loss capital, absorbing the initial wave of any defaults. It offers the highest variable returns (12%–20%+) for risk-seeking speculators.

Phase 3: The Marketplace (Instant Liquidity)

Because of the pooling mechanism, the market remains "always open" for participants.

• For Suppliers: They can deposit their bundles into the pool and receive "T+0 Instant Cash". The pool pays them immediately (minus a discount) rather than forcing them to wait for a specific buyer.

• For Investors: They purchase LP Tokens representing shares of a specific tranche, providing a "one-click" diversified investment experience.

Why Pooling is the Core Differentiator

Compared to traditional invoice financing, this system offers significant strategic advantages:

• Risk Profile: In peer-to-peer models, an investor loses 100% if one invoice defaults; here, risk is diluted across hundreds of invoices, resulting in a low-risk profile for senior investors.

• Speed: Peer-to-peer matching is slow, whereas the pool provides immediate liquidity.

• Scalability: The system is infinitely scalable, allowing funds to flow in and out like a bank deposit rather than requiring manual selection of individual invoices.

The final end state of this ecosystem ensures that the Supplier has immediate cash to grow their business, while the Investor holds a high-quality, yielding asset.