SMX and FinGo Enter Into Collaboration Mandate to Develop a Joint 'Physical to Digital' Platform Service To Enhance Natural Rubber Industry's Ability to Report on Sustainable and Ethical Supply Chains
NEW YORK, NY / ACCESSWIRE / October 3, 2024 / SMX (Security Matters) PLC (NASDAQ:SMX; SMXWW), a pioneer in digitizing physical objects for a circular economy, announces its collaboration mandate with Sthaler Ltd, which markets FinGo, a cutting-edge digital identity provider. Together, they are developing a centralized reporting platform that will authenticate and ensure transparency from the source - whether it be a field, mine, or farm - through the entire supply chain for Natural Rubber, Commodities, Food, and Mining industries.
SMX believes the global marketplace is becoming increasingly complex, and businesses face rising pressure to comply with stringent environmental, social, and governance (ESG) regulations. This pressure could result in companies ensuring that their supply chains are ethical, compliant with government regulations, and able to report data accurately in real time. This collaboration mandate, the first step in a planned broader relationship between SMX and Sthaler, is meant to address the complex challenges faced by multinational corporations in meeting ESG compliance and reporting requirements, specifically those related to:
Ethical sourcing of materials
Child labour, conflict minerals
Use of chemicals and pesticides
Location identification of farms and farmers
EU Deforestation Regulation (EUDR) reporting compliance
SMX's proprietary technology enables the seamless marking and tracking of physical materials throughout the supply chain, providing traceability and authentication from the source - be it a farm, mine, or factory - through to the final product. FinGo complements this with its Human Identity-as-a-Service (HIDaaS) platform, which uses a highly secure, biometric-based digital ID system to verify and authenticate the individuals and entities involved in the supply chain. This collaboration may offer the ability to authenticate each partner in the supply chain and create value by ensuring commodities are tracked transparently, compliantly, and securely. Additionally, it is expected to be designed to integrates FinGo's digital identity and payment solutions to streamline counterparty payments securely.
SMX specializes in the use of invisible molecular markers that are applied to materials during production. These markers remain with the material throughout its lifecycle, allowing for continuous tracking, authentication, and monitoring. This technology ensures that all data linked to the marked materials is transparent, compliant, and easily accessible via blockchain technology. With increasing regulatory demands, such as the EU Deforestation Regulation (EUDR) for natural rubber and other commodities, SMX's technology offers businesses a way to prove the ethical sourcing of materials. This helps companies meet various ESG criteria, reduce reputational risk, and enhance efficiency through digital auditing and real-time reporting.
SMX believes that FinGo offers a robust and efficient identity verification system, connecting individual identifiers such as national ID, insurance, claims, and location details using its VeinID technology. This approach is expected to provide high-level security by identifying individuals through their unique, invisible subcutaneous vein patterns, ensuring privacy and protecting personal data. SMX further believes that VeinID is particularly well-suited for industries like farming and mining, as the small data packets used for matching allow for authentication in remote areas. FinGo's platform is designed to verify individuals at the source - whether they are farmers, miners, or other key supply chain actors - and SMX believes integrates seamlessly with SMX's system to enable secure payment transactions between verified parties. This is expected to create a smooth, secure, and fully auditable end-to-end process for compliance and reporting.
Nick Dryden, Executive Chair of FinGo, added: "I believe that the need for an inclusive, accurate and reliable, identity system is greater than ever and I believe FinGo VeinID is proven to be the most reliable biometric because it's less affected by climate and demographic factors. FinGo's technology is designed to deliver a secure digital identity service that gives users the ability to quickly verify their identity, authorize transactions, and gain access to the key services simply by scanning their finger."
At SMX, we believe that the ultimate goal of this collaboration mandate is to provide authentication solutions from individual actors to multinational organizations at both the biometric and molecular levels. This allows all data and physical materials to be linked in one centralized digital structure, ensuring full traceability and regulatory compliance.
The collaboration mandate is expected to offer several key benefits:
Enhanced Transparency: SMX's molecular markers combined with FinGo's biometric identity solutions is expected to offer secure tracking of commodities from origin to final product, ensuring compliance with stringent regulations like the EUDR.
Improved ESG Reporting: The platform is expected to help businesses meet their ESG goals by ensuring that all supply chain actors-whether in food, natural rubber, or mining-are operating ethically, with compliance regarding conflict minerals, child labor, and sustainable farming.
Real-Time Digital Auditing: It is expected to offer a shift from manual, paper-based auditing to real-time, digital reporting, reducing the cost and time associated with compliance and improving operational efficiency.
Secure and Compliant Payment Systems: FinGo's secure payment gateway is designed to ensure transactions between verified stakeholders are protected and compliant with international standards, ensuring fair compensation for suppliers.
End-to-End Traceability: The combined technologies are expected to provide full traceability of materials from farm, mine, or production facility to the end consumer, maintaining data integrity and ensuring all stakeholders are verified and registered on the system.
This collaboration mandate, which runs on a three month review cycle, is expected to mark a transition from manual and paper-based auditing to real-time digital reporting, reducing compliance and audit costs, lowering reputational risks, and enhancing overall productivity across supply chain operations. In addition, it is expected to offer a practical, scalable, and commercially viable solution to modern supply chain challenges. Additionally, it is expected that the platform will also facilitate enhanced visibility and reporting, assisting businesses in complying with regulations like EUDR.
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As global businesses face new and complex challenges relating to carbon neutrality and meeting new governmental and regional regulations and standards, SMX is able to offer players along the value chain access to its marking, tracking, measuring and digital platform technology to transition more successfully to a low-carbon economy.
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