The Irreplaceable Backbone Of Modern Global Trade Finance By Benzinga

Benzinga – In a groundbreaking move, TradeFlow Capital, a prominent SME trade finance provider, successfully executed a digital transaction utilizing an e-bill of lading, raising liquidity against a seven-day shipment duration. The operation was made possible through the collaboration of key technology providers, including XDC Trade Network, Propine, TradeFinex, and YodaPlus, all operating under the innovative TradeTrust framework.

The recently released report by ICC UK shed light on the growing influence of the XDC Network ecosystem. Various global trade finance organizations have lauded the platform’s capabilities, with TradeFlow Capital’s digital transaction serving as a testament to the efficiency and transparency it brings to trade finance operations.

One of the pivotal moments in XDC Network’s journey was in 2021 when XinFin’s XDC Network creation became the first blockchain company to join the esteemed global Trade Finance Distribution (TFD) Initiative. This consortium, composed of trade originators, credit insurers, and institutional funders, is dedicated to advancing automation and transparency in trade asset and risk distribution.

Speaking about the significance of XDC Network, the chairman of the Fintech Committee at the International Trade and Forfaiting Association expressed optimism, stating that the network would facilitate bridging the $19 trillion trade finance asset class with any type of funder through tokenization and digital assets.

The collaboration between Tradeteq, a World Economic Forum member, and XDC Network resulted in the launch of TRADA tokens in 2022. These tokens, hailed as the first regulated, trade finance-backed fungible security tokens, are expected to enhance liquidity in the trade finance sector by securitizing an otherwise illiquid asset class on XinFin’s XDC Network.

Highlighting XDC Network’s prominence, the ICC and Trade Finance Global & World Trade Organization Whitepaper Periodic Table featured TradeFinex, the platform’s trade finance arm. TradeFinex specializes in deploying tokenized assets on Public/Private Blockchain Networks using regulator-friendly instruments to address issues related to electronic Bills of Lading (eB/Ls). TradeFinex allows the creation of a regulated pool on the marketplace for improved cash flow and easy access to trade financing, strengthening buyer/supplier relationships by following a few simple steps. FXD is an XDC Network-based stablecoin, representing a stable-price cryptocurrency issued and developed by Fathom DAO, a decentralized autonomous organization, that is used as a settlement layer for peer-to-peer protocols utilized by regulated trade finance originators.

The World Trade Organization further underscored the significance of Tradefinex and XDC in their 2020 book titled “BLOCKCHAIN & DLT IN TRADE: WHERE DO WE STAND?”.

XinFin XDC Network, renowned for its global, open-source, delegated proof of stake consensus network, boasts features like hybrid relay bridges, instant block finality, and interoperability with ISO 20022 financial messaging standards. The platform’s hybrid architecture is specifically designed to support institutional use in trade finance and tokenization, aiming to bridge the existing finance gap in global infrastructure.

With the ability to handle 2,000 transactions per second, interoperable smart contracts, and compatibility with the Ethereum Virtual Machine, the XDC Network stands out as a scalable infrastructure catering to both enterprises and independent community contributors, further solidifying its role in shaping the future of digital trade finance.

This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice. Cryptocurrency is a volatile market; do your independent research and only invest what you can afford to lose. New token launches and small market capitalization coins are inherently more risky than large cap cryptocurrencies. These tokens are subject to larger liquidity and market risks.

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