How Blockchain can help Streamline Company Finances

Companies across the Middle East are struggling with approximately $50 billion in trapped liquidity, which is severely affecting their balance sheets According to a report from PricewaterhouseCoopers (PwC) Middle East.

Trapped liquidity can be caused by various reasons, such as money being tied up in complex investments, delayed payments from clients, or regulatory restrictions in certain countries.

This can make it difficult for the company to pay its bills or invest in new opportunities, even if, on paper, it seems financially healthy.

How this issue can be mitigated through blockchain technologies

Blockchain technology can help mitigate the problem of trapped capital and financial burdens on shareholders in several ways:

1. Blockchain as a decentralized and transparent ledger can record transactions in real time. This transparency can help companies track payments and assets more efficiently, reducing the time and effort spent on reconciling accounts. This also helps build transparency and trust between parties.
2. Through smart contracts which are self-executing contracts with the terms directly written into code, payments are triggered automatically when predefined conditions are met. This can streamline financial transactions, ensuring that payments are made on time and reducing the instances of funds being trapped due to delays or manual processing errors.
3. Tokenization involves converting physical or digital assets into tokens on a blockchain. These tokens can be easily traded or exchanged, providing liquidity. Companies can unlock liquidity by tokenizing assets through blockchain that are otherwise hard to trade or sell quickly. This could include real estate, inventory, or other types of collateral.

The article also states the healthcare sector has been seeing continuous improvement, this can be attributed to various reasons but another emerging trend that could be a cause is the increased willingness in integrating blockchain technologies in their healthcare systems.

For instance XRP Healthcare, the blockchain-based healthcare platform, has once again generated excitement within the Web3 community due to its latest developments. On July 12, the company revealed that it has successfully obtained trademark registration in the UAE, bolstering its ambitions for global expansion.

It is without a doubt that the blockchain is shaping the modern era of financial markets and the organizations staying on the forefront of this trend are boosting their growth.

We at octaloop have also engaged and developed end to end blockchain solutions for various clients. In case you are looking for the next great leap for your business, don't hesitate to reach me out.

You can see our work by visiting this page .