Trade-Fi lending

Revolutionising Trade and Supply Chain: Trade-Fi lending on XDC Network

Blockchain tokenisation can bring several improvements to the trade and supply chain/logistics industry, revolutionising the way goods and services are exchanged and managed. The story of Trade has to mention the story of Money – in partcular the movement of money cross-border and in exchange for Physical Goods.

TradeFinex is often thought of as the foundational dApp built on XDC Network (see https://www.tradefinex.org/). We saw the importance of offering Merchants cost-effective loans that are supported by the Tokenisation of Private Debt. So in 2020 XDC Network became close friends to the International Trade and Forfaiting Association (ITFA) and particpated in various Fintech working groups to enable secure and reliable Blockchain solutions in effect today.

Now that Finance is tokenised, how else can we help!

Instant Paperwork, Real-Time Liquidity XDC : Trade Network dApp integration to TradeFinex

Businesses will no longer be waiting inordinate amounts of time – waiting for paperwork to arrive from one location to another – paperwork will ALWAYS be on time – in fact instant when freight arrives and is received at the destination. Cash flow related to each freight transaction will be made liquid far more quickly, far more responsively to the movement of cargo and goods all over the world.

See https://www.xdctrade.network/

Empowering Middle Economies

The mere impact on Micro/Small/Medium Enterprises (MSMEs) cash flow and thus increase in real-time liquidity alone will be enough to turbo charge the Middle Economies – and the vitally significant small business economic class in each region and nation.

A Paradigm Shift in Lending

However, the LENDING industries, may also undergo a paradigm shift through tokenisation of Trade Finance itself. Here are some ways blockchain tokenisation can benefit trade finance lending, or Trade-Fi:

Enhancing Liquidity and Accessibility

Trade financing and liquidity Tokenisation can create new financial instruments, such as trade finance tokens, which represent ownership of trade receivables. These tokens can be traded on secondary markets, providing liquidity to suppliers and reducing their reliance on traditional financing.

Speed, Security, and Streamlined Transactions

Faster and more secure transactions Blockchain tokenisation enables peer-to-peer transactions without the need for intermediaries. This reduces the time and costs associated with traditional trade finance processes and enhances security through cryptographic techniques.

Efficiency and Automation through Smart Contracts

Enhanced efficiency and automation Smart contracts can automate various trade-related processes. These self-executing contracts ensure that all parties involved adhere to predefined terms, reducing administrative burdens and human errors.

Exploring Tokenisation in Trade Finance

For a fresh look at Tokenisation of Trade Finance through a traditional lens see Fund Managers page.