In September we wrote about LogisticsX, the ICON DApp and investee offering traceable and verifiable last-mile logistics through blockchain. The company stands out because it’s one of the rare ICON DApps, not based in Korea.
But it looks like as of November 6, they’ve strengthened their Korean ties, signing on as the inaugural member of the Global Supply Chain & Logistics Alliance (GSLA), created by bitcoin-based (RSK) supply chain platform TEMCO.
According to a TEMCO press release, the alliance was created to solve supply chain management difficulties around the world by bringing together supply chain and logistics blockchain projects as well as industry experts.
“The formation of GSLA is a much-needed step towards solving the global supply chain and logistics problem through blockchain. We are very excited about this partnership and the future of GSLA with companies that will be coming onboard.”
LogisticsX released more details on the deal in a Medium post about the MOU. The group aims to solve the issue of localization for logistics platforms. Since no one blockchain project knows every detail about the business ecosystem in every country, this alliance will allow for joint solutions through collective expertise.
How they do that, precisely, remains to be seen. Will, for instance, the companies swap information across their private chains using ICON as an intermediary? Or will the blockchain simply allow these companies to make frictionless cross-border payments to each other?
Even that may not be as simple as it seems. For instance, the Korean government treats cryptocurrency transactions for businesses as if they’re made in Korean won. As a result, they’re subject to 10% VAT, even if services are delivered for an overseas company. This is not the case with overseas cash payments.
For now, this alliance is still small, with just two members. This makes its future reach and influence unclear. It’s TEMCO’s first demonstrable success since they secured equity investment from one of Korea’s leading venture capital firms, Korea Investment Partners (KIP). For LogisticsX, this fulfills one of their long-time goals to expand into east Asia, because of the outsize role the region plays in blockchain.
LogisticsX has been busy on the partnership front this month. On November 20, the group announced that they were entering a strategic partnership with QCP Capital, which describes itself as a digital asset trading firm headquartered in Singapore which runs quantitatively-driven strategies with a focus on trading crypto derivatives.