• The German automaker is the first in the EU to use the Ethereum blockchain to finance cars

  • Auto1 FT, a financial partner in the automotive industry, has become the first European company to enable vehicle financing through the use of Ethereum smart contracts.

    In a press release, the Germany-based company stated that the move aims to eliminate all paperwork in order to facilitate its core business of car financing.

    The smart contracts will be used throughout the financing process’s entire life cycle. Auto1 FT also aims to reduce costs and errors as a result of the blockchain technology’s tamper-proof nature and increased transparency.

    “Our digital solution provides enormous efficiency benefits for car dealers while also setting new mobility industry standards.” The use of smart contracts reduces the total cost and documentation involved in financing a car to a bare minimum. Increased data security, combined with faster and less expensive applications, ensures high efficiency. “Because of the blockchain, errors and confusion are virtually impossible,” said Auto1 FT Managing Director Taimur André Rashid.

    Payment methods, calculations, fees, and the all-important credit scoring will all be handled by the system.

    Auto1 FT provides simple digital financing solutions for the used car market, and the incorporation of blockchain technology consolidates all vehicle-related contractual details into a single agreement, paving the way for complete digitization. In addition, Auto1 FT has created a system that assists car dealers by providing flexible and quick liquidity.

    Changing the Auto Industry

    The move is expected to transform the European vehicle financing scene, focusing on areas such as data security and efficiency. The latest blockchain integration, according to the company, is one of the first steps in expanding the digital value chain.

    It is worth noting that Auto1 FT is not a newcomer to blockchain technology. In June, the company became the first in Germany to conduct a security token offering (STO). The tokenization of a €4 million corporate bond was the goal of the offering.

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