Blockchain–Cloud Integration for Cross-Border Invoice Factoring: A Secure and Scalable Framework for Sustainable Trade Finance

Abstract

Cross-border trade finance supports liquidity and global supply chain growth, especially for small and medium enterprises (SMEs). Traditional documentation and invoice factoring systems face delays, huge documentation, fraud risks, poor interoperability, and limited transparency which results in unsustainable action. Blockchain-based trade finance improves immutability, decentralized validation, and automation through smart contracts. However, it suffers from scalability limitations, fragmented data management, and regulatory integration issues. Academic literature lacks a unified framework combining blockchain and cloud to address these operational gaps. This study fills the gap by evaluating traditional, blockchain, and hybrid models in trade finance systems. The paper reviews major use cases to understand realworld blockchain implementations in trade finance. These include HSBC and ING's blockchain letter of credit, and Bank of Canada's Project Jasper. UBS's blockchain payment initiative is also analyzed for its real-time settlement and auditability benefits. The study compares traditional and blockchain systems across speed, security, transparency, and integration parameters. It identifies that blockchain alone is insufficient due to its lack of scalability and limited system compatibility. To address this, the paper proposes a Blockchain-Cloud Integrated Trade Finance (TF) Framework. This includes hybrid data storage, Application Programming Interface (API) compliance, digital identity verification, and stakeholder dashboards. Using a design science approach, the framework improves auditability, transparency, and regulatory alignment. Findings benefit regulators, banks, and FinTech's. The framework not only enhances efficiency and compliance but also contributes to sustainable trade finance