Digital Negotiable Instruments such as Digital Promissory Notes and Digital Bills of Exchange are increasingly being used in working capital solutions, with buyer-led supply chain finance programmes expected to double within the next 5 years. With legislation based on the UN’s MLETR being adopted around the world, these instruments represent the future of trade finance.

Banks need to ensure digital documents can be trusted from invoice origination through to acceptance, and potentially onward endorsement, of the finance instrument.

Arqit TradeSecure is a quantum-safe independent minting and sealing service for DNI. offering full traceability and visibility of instruments, maintained by a cryptographically immutable “digital twin” that records changes of ownership in a secure digital ledger​.

Arqit integrates its Quantum Cloud and Digital Negotiable Instrument (DNI) solutions, which meet the legal requirements set out in the UK’s Electronic Trade Documents Act 2023.

Enhance your customer acquisition and retention through use of simple & secure digital trade instruments.

Banks and Investors using Digital Negotiable Instruments (DNIs) need to be able to rely on the integrity of the system and of the data used to generate the DNIs. We ensure that the transaction process is traceable and auditable from end to end.

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Data at source is accurate & reliable: In order for a DNI to be legally relied upon, the data in the Instrument has to be fully verifiable. This is why TradeSecure draws upon data from source, rather than securing drafted documents. Documents themselves cannot reveal the source and accuracy of data contained within them, which can be compromised by poor machine reading, errors and fraud. TradeSecure enables a complete audit trail of all the data points from invoice origination to retirement of the instrument. TradeSecure “mints” a digital Instrument only when it has collated the relevant invoice data straight from source, using an API connection with a Corporate's ERP system. This data will then be used by TradeSecure in the ‘minting process’ in which the invoice data is uploaded via a quantum-safe connection.

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Proof of authenticity is key to a valid DNI:Leveraging Arqit's patented symmetric key encryption, Corporate signatures are uploaded onto TradeSecure by authorised signatories. When a minting request is made, electronic signature images are embedded into the immutable minted Instrument providing a proof of the Instrument’s authenticity, as both the Corporate and the individual signing on behalf of the Corporate are identifiable.

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Instrument's unique identification is essential for traceability: Every DNI has a unique immutable ID. The ID generated by Arqit’s technology cannot be altered, which allows the instrument to be secured and traced through its transaction journey on the TradeSecure Gateway. When an Investor wishes to take possession of the DNI, they can scan the Instrument's QR code to confirm the authenticity and ownership of the document on quantum-safe blockchain, including the underlying invoice data attained directly from the corporate ERP. If an unauthorised third party attempts to change the content of a DNI it will generate a new ID, which would invalidate the altered Instrument thereby protecting the original as the blockchain validation audit would reject the changed DNI.

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Transaction Audit: It is essential that a Bank/Investor intending to finance a DNI can view the source invoice data prior to accepting the DNI, and can trace the data flow back to source when it is duly retired. Any Bank/Investor always has the ability to cross-reference the authenticity of the DNI against a ‘Digital Twin’ stored on the TradeSecure blockchain (created at the time of minting) which provides a full record of the transaction.

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Legal Audit: Adoption of DNIs is dependent on their ease of use and on their legal recognition as they may be used in evidence. TradeSecure has created an easy-to-use, legally recognised digital instrument, that meets the ‘Gateway Criteria’ and legal tests set out in the UK’s 2023 Electronic Trade Documents Act. Any dispute as to the provenance of the DNI can be traced throughout the transaction history back to the source data of both the invoice data and the signatures. Arqit’s Military grade-security coupled with complete visibility of transaction data throughout the instrument’s life cycle means that TradeSecure can guarantee that the DNI is 100% genuine and unadulterated throughout its lifecycle and therefore can be legally relied upon.

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Accountancy Audit: TradeSecure DNIs contain all the necessary data for a Corporate to operate under both IFRS and Local GAAP accounting standards, by providing a full audit trail of the contents of a DNI, including the underlying invoices and the associated corporate actions.

Arqit TradeSecure is a digitally native service that mints and secures trade finance assets and leverages Arqit’s quantum-safe patented technology to future proof supply chain finance solutions against cyber-attack, transaction disruption and fraud.

By securing digital trade documents to the highest standard financial institutions, banks, corporates and SCF platforms can fully rely on the integrity of their trade documents now and in the future.