Pelago Labs launches supply chain financing platform on Stellar network

Pelago Labs announced on March 25 that it leveraged integration with Stellar to build its crypto-enabled supply chain financing platform. The solution tokenizes and fractionalizes the account receivables of accredited buyers to create smaller and supplier-specific representations.

Vancouver-based Pelago Labs claimed that its integration with Stellar was aimed at developing a crypto-enabled supply chain financing platform that unlocked pre-settlement liquidity for suppliers. The solution empowers suppliers to secure the working capital they need, backed by the buyer’s credit, to improve cash flow efficiency.

According to Pelago Labs, suppliers can settle funds accessed through the platform in USDC on Stellar through PolyFlow’s liquidity-pool-based payment channel. The funds can alternatively be settled through off-ramps to local currencies via authorized providers. Pelago’s supply chain financing platform also integrates an on-chain KYC system built by PolyFlow and an enterprise-grade wallet.

Pelago streamlines supply chain financing through Stellar integration

The Pelago Labs team published a press release on Tuesday revealing that Pelago now leverages Stellar’s smart contract platform to build its supply chain financing platform. These digital certificates empower suppliers to secure the working capital they need, backed by the buyer’s credit, to ensure seamless order fulfillment—even for suppliers without direct contact with the end buyer. 

Denelle Dixon, CEO & Executive Director of the Stellar Development Foundation, said “the power of blockchain technology to transform the future of finance was on full display with Pelago’s crypto-enabled supply chain financing platform.” She added that giving small and medium-sized enterprises access to credit and liquidity on-chain unlocked economic opportunities that drove adoption. The Pelago team explained that suppliers could now settle funds accessed through the platform in USDC on Stellar via PolyFlow’s liquidity-pool-based payment channel.

“This innovative solution demonstrates the practical utility of the Stellar network and USDC in facilitating real-world working capital lending…to enable SMEs to access decentralized financial solutions that eliminate liquidity constraints and streamline their access to working capital.”

~ Raymond Qu, co-founder of PolyFlow

Raymond Qu added that smart contracts on Stellar enabled efficient scaling and the ability to handle complex business models. These attributes made smart contracts on Stellar a tool for building Pelago’s supply chain financing solution.

Creditor deploys a $1M+ USDC credit facility on Pelago SCF

Last month, two Pelago Supply Chain Finance Platform suppliers successfully secured a $1,000,000 USDC on-chain loan from creditor Trusta Labs on the Stellar network, powered by PolyFlow’s PayFi protocol. The Pelago team acknowledged that Pelago SCF directly helped two suppliers overcome cash flow issues by providing access to working capital. These suppliers leveraged on-chain credit to secure funding ahead of buyer payments, thus ensuring operations did not stop and financial flows were stable. 

The Pelago Labs team also disclosed that it is committed to transforming supply chain finance by offering crypto-backed lending to real-world businesses. Through Pelago SCF, creditors can deploy digital assets to support small and medium-sized enterprises (SMEs) while suppliers gain access to funding without traditional banking barriers. 

The Pelago Labs team also mentioned that the Pelago SCF platform on Stellar provides suppliers with equal access to global financial systems at a lower cost. The Stellar network permits trading in digital assets while integrating with the traditional economy.

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot