BoxBit is working to provide a way for companies that are involved in supply chains and the shipping of goods to use blockchain.
It is among a wave of fintech companies that have incorporated in Bermuda this year.
BoxBit was started in April, and has its operational office in Illinois. Its co-founder, Scott Harper, is bullish on Bermuda and the way it has embraced the fintech and blockchain sectors.
Speaking to The Royal Gazette, he explained the goals of BoxBit. He said it was trying to provide a “practical on-ramp” for companies using blockchain in the shipping logistics environment.
The benefits for businesses would include having indelible records of trades, being able to see the entire supply chain to easily locate where items are in the process, and check the status of transactions.
Some of the world’s largest shipping and logistics companies already use blockchain, including Maersk and UPS.
Mr Harper, who is chief executive officer of BoxBit, said: “We see a lot of the bigger companies are investing in this. They are testing and looking at the architecture.
“Some small and medium-sized companies have heard the term [blockchain], but they have not diverted the resources to tackle it.”
He said BoxBit is building and refining the first version of its system, with a working version expected soon.
“We will have demos in the next month. We are still looking for new investors and we are reaching out to new clients.”
When asked if BoxBit will establish an office presence in Bermuda, Mr Harper said it was a possibility in the future. “We would like to have a development effort in Hamilton.”
The decision to incorporate in Bermuda was taken after it had investigated “crypto-friendly places” in the western hemisphere, including Cayman Islands and the British Virgin Islands.
Mr Harper was familiar with Bermuda, having spent his honeymoon on the island.
“It was wonderful time. It was so well maintained and friendly. It was a classier venue than the others. It has the regulation, the environment is more progressive, and it is not a ‘free for all’,” he said.
In an online article at Venturebeat.com, Mr Harper highlighted the reasons why BoxBit chose Bermuda.
He wrote: “Bermuda isn’t just accepting of blockchain, its rolling out the carpet to become a crypto destination, and it is succeeding.”
He extolled what he sees as the advantages Bermuda offers companies that are working in the blockchain space, including the passing of laws and regulations for the sector and having a “robust existing support structure for fintech”.
He reiterated those views when speaking with The Royal Gazette, saying he was very bullish on Bermuda compared to alternatives such as Singapore and Switzerland.
Asked what his message would be to other US-domiciled companies in the fintech sector, he said: “Look at Bermuda as a clear alternative.”
• BoxBit has a website at https://www.boxbit.company/