The global trade finance industry has been evolving for centuries, turning into a mighty economic sector with a $5.6+ trillion market cap. Trading operations are financed through two major channels – traditional and alternative banking – that complement each other and help the sector progress.
Alternative financial instruments are currently represented with distributed ledger technologies (DLT), or blockchain, to give broader access to trade financing for small-size market players usually falling into the cracks of the conventional banking system. DeFi solutions are known for greater flexibility and access to finance, which helps micro- and small-size enterprises succeed in the trading sector. One such innovative solution entering the trade finance market is Trade Leaf – a DeFi platform supporting businesses of all scales with innovative digital lending services.
Challenges in the Traditional Trade Finance
The greatest pressure experienced by the traditional trade finance sector is the widening trade finance gap. Banks have traditionally been the primary source of financing for trade organizations; however, the banking systems in developing countries are immature or weak to cover these companies’ financing needs.
This imbalance has caused a $1.7+ trillion finance gap, giving large corporations from developed states an advantage and leaving small startups in underdeveloped regions without essential financing.
What Does Web3 Have for Trade Finance?
Web3 technology is rapidly emerging in the digital space, transforming all sectors, including trade finance. The benefits of Web3 projects cover:
- Transparency and traceability of all on-chain operations
- Thorough participant verification and reputation tracking
- Lending and staking features for trade finance pooling
- SecTRADure, well-encrypted payment gateways
- Smart contract-enabled trade finance contract execution
- Advanced creditworthiness assessment mechanisms different from credit scoring in banks
How Trade Leaf Comes into Play
Trade Leaf has emerged to solve the trade finance gap problem and democratize access to trade finance for all market entrants, no matter their size and region of operations. The company uses blockchain technology to unify traders, service partners, and liquidity providers in a single finance ecosystem, operating without intermediary oversight.
The Trade Leaf Ecosystem
The unique blockchain-based ecosystem of Trade Leaf unifies the key finance trade market participants (trading companies, service partners, and liquidity providers) on a functional and secure platform covering:
- A crypto lending marketplace. This part of the system functions as a fully automated, decentralized protocol on which liquidity providers and consignees can borrow and lend crypto assets on more flexible, democratic terms than traditional financing allows.
- A trade finance marketplace. This feature allows traditional liquidity providers to partner with consignees and provide insurance-covered deal financing in a non-custodial fashion.
- A deal marketplace. This section is the heart of the trade deals that allows trading market participants to find partners, buy and sell various goods, and make delivery and payment arrangements.
- A services and solutions panel. The user panel was conveniently designed to help Trade Leaf members track all their operations with counterparties in one place, issue and settle invoices, and manage all their cargo/shipment documentation.
Benefits Trade Leaf Offers to Trade Finance Market Players
Trade Leaf has revolutionized the way trade finance operations take place, giving all participants of the trade industry a transparent and functional instrument for deal financing, initiation, and tracking. The trading firms enjoy:
- A broad network of liquidity providers (crypto and traditional lenders)
- Standardized processes
- A full range of receivables and payables instruments vital for effective trading activities
- Smart reconciliation processes that take trade security to the next level
Trade Leaf is also a universally beneficial solution for liquidity providers in terms of:
- Financing instrument diversity
- Broad and security bank connectivity
- Transparency of financing procedures
- Rigorous anti-fraud protection
- A diverse portfolio of providers
- Regulatory compliance of all operations
These features have made Trade Leaf a transparent, secure, and innovative platform for trade finance operations, attracting lenders and borrowers with predictable mechanics and breadth of unique Web3 features. The project also has considerable potential for third-party actors, like service providers specializing in compliance, due diligence, logistics, and advisory/consultancy for trading operations.
A Glimpse at Trade Leaf’s Token Economy
As a blockchain-based project following the DeFi structure, Trade Leaf has a native utility token. The token is used for participant incentivization, reduced commission payment, and a referral reward. Trade Leaf’s members can use the token to:
- Receive trade finance activities rewards
- Pay the platform fees
- Get cashback for financial operations
- Access premium services.
Reap the Web3 Benefits for Your Trade Finance Business with Trade Leaf
Trade Leaf has emerged as a workable DeFi solution to the present-day challenges small-size businesses experience in the international trade sector. It provides democratic access to traditional and crypto finance for all market participants and gives a broad-functionality ecosystem for end-to-end trade operation management.
A wide range of Web3 features and state-of-the-art blockchain-powered functions set Trade Leaf apart from traditional trade finance platforms. Thus, the project is set to become a popular solution for trading firms of all sizes, liquidity providers searching for safe and transparent financial instruments, and high-tech third-party service providers.
For more information check out the website or follow the social media channels.
- Website: https://tradeleaf.io/
- Twitter: https://twitter.com/tradeleaf
- Telegram: https://t.me/tradeleaforg
- LinkedIn: https://www.linkedin.com/company/tradeleaf/about/