Automotive industry financial partner firm Auto1 FT has become the first European company to enable financing purchase of vehicles while leveraging the Ethereum smart contracts.
In a press statement, the Germany-based firm noted that the move aims to eliminate all the paperwork in facilitating its core business of car financing.
The smart contracts will be used across the entire life cycle of the financing process. Auto1 FT also seeks to cut costs and errors due to the tamper-proof nature and enhanced transparency of the blockchain technology.
“Our digital solution brings enormous efficiency benefits for car dealers and is setting new standards in the mobility industry. Using smart contracts reduces the total expenditure and documentation involved in financing a car to a minimum. The increased data security alongside faster and cheaper applications ensures high efficiency. Errors or confusion are virtually impossible thanks to the blockchain,” said Auto1 FT Managing Director Taimur André Rashid.
The system will also handle payment modalities, calculations, fees, and all-important credit scoring.
Auto1 FT offers convenient digital financing solutions for the used car market, and the integration of blockchain technology provides all vehicle-related contractual details in a single agreement, in the process paving room for complete digitization. Furthermore, Auto1 FT has developed a system that supports car dealers by providing flexible and rapid liquidity.
Revolutionizing auto industry
The move will likely revolutionize the European vehicle financing scene, focusing on areas like increasing data security and efficiency. According to the company, the latest blockchain integration is among the initial steps to expand the digital value chain.
Worth noting is that Auto1 FT is not new to embracing blockchain technology. In June, the firm became the first German automotive company to conduct a security token offering (STO). The offering was aimed to tokenize a corporate bond with a valuation of €4 million.