Founded: June 2019
Products: Electronic negotiable instrument platform
Overview: FQX offers a platform that enables the issuing and receiving of electronic negotiable instruments (eNI), secured through modern blockchain technology. The application areas are in money markets and trade, sales and supply chain finance. FQX’s domain of activity is both the financial and legal technology space with initial primary focus on eNotes – electronic promissory notes – namely unconditional promises to pay.
FQX provides an infrastructure on which corporates, banks and investors can issue and receive e-Notes in real-time, resulting in improved liquidity and risk protection for both trading partners. eNotes have been cited as a ‘gamechanger’ for trade finance by BAFT, ITFA and the ICC.
FQX has built a live platform where MNCs, commodity traders, banks and other investors can run accounts that allow them to digitally issue, sign and transfer eNotes. The FQX eNote infrastructure is based on the banking-grade Swiss Trust Chain, exclusively using Tier 4 server centres.
All FQX eNotes are signed and transferred by using Qualified Electronic Signatures (QES) from Swisscom Trust Services. FQX has a patent pending on this combination of banking grade Distributed Ledger Technology (DLT), corporate authentication mechanisms and QES. DLT used is based on IBM’s Hyperledger Fabric standard and other technologies. FQX has already accomplished an eNote transaction for more than $1m in 2020.
In early June 2021, FQX announced $4.7m in seed funding, led by Earlybird Venture Capital.
Active region(s): Europe, Latin America, Africa, Asia
Partners: SwissCom, Post Finance, Microsoft for Startups, International Chamber of Commerce
Ownership: 4 Co-Founders
Elevator pitch: “Combining highly proven instruments with the most recent legislation and technology, FQX allows the standardised and globally scalable transfer of unconditional promises to pay. FQX applies the best legal, finance and technology expertise to the field of electronic negotiable instruments as the promissory note. The FQX eNI (electronic Negotiable Instruments) platform allows businesses to control their liquidity by issuing, transferring and closing eNotes for financing and investing purposes. The enforceability in 164 countries allows the use on a global scale. FQX is a partner of Swisscom for the use of Qualified Electronic Signatures. All eNI are stored on the Consensus-as-a-Service banking infrastructure of Swisscom and Swiss Post.”
TMI view: FQX has done a huge amount of ground work that should give platform users real confidence. With ICC support it could well prove to be the game changer this paper-bound industry needs.
Verdict: A unique and innovative combination of financial and legal technologies that has the potential to make a huge difference in the trade space.