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Published Online: Jul 24, 2026

Decentralized finance for supply chain cash-flow: token-to-fiat currency exchange model

Published Online: Jul 24, 2026

Nidhin SREEDAS E

Email: nidhin_p230133me@nitc.ac.in
National Institute of Technology Calicut, Kerala, India

V. Madhusudanan PILLAI

Email: vmp@nitc.ac.in
National Institute of Technology Calicut, Kerala, India

Hiran V. NATH

Email: hiranvnath@gmail.com
National Institute of Technology Calicut, Kerala, India
Views: 261
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Abstract:
Background: Blockchain-enabled Decentralized Finance (DeFi) has the potential to improve supply-chain cash-flow coordination through automated, transparent, traceable and immutable transactions. However, many existing DeFi-based supply-chain solutions rely on external blockchain platforms and publicly traded cryptocurrencies, raising concerns about reliance on third parties, transaction costs, governance limitations, regulatory uncertainty, and cryptocurrency price volatility. These concerns are particularly important in multi-tier supply chains, where payment delays and fluctuations in settlement value can affect working capital stability across upstream and downstream firms. Methods: This study combines empirical analysis of cryptocurrency volatility, Design Science Research, and simulation-based evaluation. Daily price data for Ether, Bitcoin, Solana, and XRP were analysed from 1 March 2025 to 1 March 2026 to assess settlement-value instability. Based on the identified problem, a permissioned, self-governed DeFi application built on a blockchain was developed, with an internal token-to-fiat exchange mechanism. A Monte Carlo simulation with 2000 runs was then used to compare public-cryptocurrency-linked settlement with the proposed permissioned DeFi-based settlement environment. Results: The empirical analysis showed substantial cryptocurrency volatility, with annual declines of 12.52% for Ether, 23.57% for Bitcoin, 41.81% for Solana, and 38.29% for XRP. The simulation further showed that public-cryptocurrency-linked settlement can create considerable variation in realized payment value across supply-chain tiers. In contrast, the proposed DeFi model provides a stable internal settlement benchmark by insulating intra-supply-chain transactions from public-crypto repricing. Conclusions: The study demonstrates that a self-governed, permissioned DeFi architecture with managed token-to-fiat convertibility can improve supply-chain cash flow stability, reduce dependence on external blockchain infrastructure, and strengthen financial resilience in multi-tier supply-chain networks.
Keywords:
Decentralized Finance (DeFi), Blockchain, Supply chain cash flow, Token, Supply chain exchange, Supply Chain Resilience
Pages:
565-587
JEL Classification:
E42, G32, L14, M11, O33
DOI:
https://doi.org/10.46656/access.2026.7.3(5)
How to cite:
Sreedas, E. N., Pillai, V.M., Nath, H.V. (2026). Decentralized finance for supply chain cash-flow: token-to-fiat currency exchange model. Access to science, business, innovation in the digital economy, ACCESS Press 7(3), 565-587, https://doi.org/10.46656/access.2026.7.3(5)
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