TruckCoinSwap digital asset promises free bill settlement and fast payment
Fintech company TruckCoinSwap (TCS) has announced that its transportation digital asset program has launched on CrossTower Exchange, a global crypto and non-fungible token marketplace. This is the first step for TCS Token as it seeks to compete with factoring companies and banks.
“The cost of milk and eggs is not only rising because of inflation. Banks and factoring companies are making it more expensive to operate trucks,” said Jake Centner, TCS Chief Technology Officer. “The best use case for blockchain technology and digital assets is to disintermediate these types of financial issues in the industry.
“Using TruckCoinSwap – and TCS Token – mobile and web apps, transport companies can now receive free bill settlement and get paid sooner. TCS is helping to write a new chapter in blockchain and web3.”
In an interview with FreightWaves, TCS CEO Todd Ziegler explained the impetus behind providing a digital asset for the trucking industry, outlining factoring and banking systems that provide cash flow solutions for third-party trucking and logistics companies.
“We started doing the math and while 3% of each receivable doesn’t sound so bad, annualized over the terms, it’s basically a 20% to 25% interest rate on a cash advance. said Ziegler.
Ziegler then wrote a white paper on the subject and soon caught the attention of the Advanced Blockchain Lab at the University of Wyoming. TCS announced its partnership with CrossTower Exchange last weekend during the university’s Blockchain Stampede conference.
Working with the university and current lab director Steve Lupien, who is now advising TCS on its digital asset exchange, the company is currently preparing a beta test with approximately 10 pilots over the next five weeks as it prepares to execute its first live TCS transaction during FreightWaves’ Future of Freight Festival November 1-3.
Will drivers adopt it?
While Ziegler acknowledged that there might be some trepidation among drivers about trusting a blockchain and token system for payment, adviser Lupien described how the use of driver paperwork, or in this case, their digital assets, is not the same as cryptocurrency trading.
“The beauty of what TCS is doing is using digital assets as a way to solve the payment problem. For the user of the product, it doesn’t matter what the back-end is. Essentially, a driver is going to take a picture of his manifesto using his phone and then using a debit card to get near instant access to his liquidity at much lower costs It’s not like they trade bitcoin or were doing cryptocurrency in this regard. Blockchain is simply the primary vehicle that allows TCS to provide this liquidity at a lower cost,” Lupien said.
Users might also be concerned about the volatility of these digital assets and cryptocurrencies in general, although Philip Schlump, chief client officer and lead developer of TCS, explained the security of the model.
“Carriers and 3PLs need access to liquidity, so they need to sell TCS. Drivers need to fill their rigs and get to their next load. They don’t invest in crypto, so we built the tokenomics model around that need,” Schlump said. “If TCS needs to buy the token on the other side of an exchange transaction, it will. In fact, TCS will become the biggest buyer.”
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