XDC Trade Network has achieved remarkable milestones in facilitating the conversion of paper Bills of Lading (BL) to electronic BL (eBL) through their innovative solution in a first ever transaction of its type in close co-operation with its ecosystem partners.
Alongside this accomplishment, XDC has also provided essential capital to support the trade transaction.
Working in collaboration with their ecosystem partners, XDC Trade Network has successfully delivered the following groundbreaking technical and trade financing achievements:
Converted a paper BL to electronic BL on TradeTrust using DocuTrade and safe keep with MAS regulated custodian in Singapore
- Shipper tokenised the eBL and fractionalise the same
- Capital provisioning against fractionalised eBL for the shipment duration of 7 days
Participants in the pilot –
- TradeFlow Capital Management Pte Ltd for the USD TRADE FLOW FUND SP – Shipper
- Propine – Digital asset custodian.
- TradeFinex – Institution liquidity provider.
Solution used in the Pilot –
- XDC Trade Network (market place for trades finance)
- DocuTrade by Yodaplus (to digitise trade documents)
- TradeTrust utility by IMDA (MLETR compliant standards)
This is the 1st transaction over XDC Trade Network which showcased how liquidity can be availed from an alternative financier by tokenising a real-world asset. TradeFlow Capital (shipper) was able to raise liquidity as soon as the ship sailed. This gave them a cash flow of 7 days (transit time) and ease of transaction as the trade documents were digitally created making it easy to verify and transfer. Commodity shipped was COPPER MILBERRY SCRAP for green recycling and value of the transaction was USD 150K.
Quotes from Trade transaction participants
|John Collis, CRO TradeFlow (shipper)||The direction of travel is clear, this transaction is a tangible step forward for the new digitalised transaction universe, made up of among others, ICC Digital Standards Initiative and eLC’s and interoperable BL systems.|
|Tom James, CEO & CIO TradeFlow (shipper)||This pilot transaction enabled us to digitise a paper BL on TradeTrust from the IMDA Singapore Government and escrow it with an MAS regulated custodian. We further tokenised this eBL and fractionalised the same. On the XDC Trade Network we raised capital for one token (fraction value) which was very helpful in unlocking liquidity for the cargo transit period.|
|Sunil Senapati, CEO XDC Trade Network||By deploying the best of the technologies and using the document standards from ICC DSI, we are able to provide a digital solution for cross-border trade and provide 100% liquidity for these Trades. This pilot transaction was completed in 30 minutes from the creation of documents until the trade funding. We invite all the MLETR-compliant solutions to work with us to address the trade finance gap.|
About TradeFlow Capital
TradeFlow is the world’s first Fintech-powered commodity trade enabler focused on SMEs. TradeFlow operates funds which invest into bulk physical commodity import / export transactions which would otherwise have fallen into the ever-increasing trade finance gap faced by global SMEs around the world. By performing an enabling role in international trade and globalization, TradeFlow creates growth opportunities for businesses and economies and delivers stable investment grade returns for investors.
To date, TradeFlow has successfully invested in more than US$3Bn of physical commodity trades through 2500+ transactions across 18+ countries and 30+ commodity types, with more than 1400 SME counterpart entities KYC reviewed. As part of its unique business model, The TradeFlow Funds*, advised by TradeFlow, were conceived in 2016 and launched in 2018.
TradeFlow is a Partner of the International Chamber of Commerce (ICC) to mobilise capital and improve trade finance access for SMEs worldwide through the “’ICC Trade Now” and “ICC Digital Trade Standards Initiative” platforms.
- Daniel Chua, VP,
- Stakeholder Relations & ESG
- For more on TradeFlow please visit www.tradeflow.capital
About XDC Trade Network
XDC Trade Network (XTN) is a complete suite of dApps on XDC Network that aims to redefine the global trade finance Industry by digitalising the entire process. Its objective is to provide liquidity for trade documents as collateral and avail 100% funding. XTN acts as a market place where exporters/importers and Liquidity providers (LP) are on-boarded thru a regulated custodian. LPs can verify, endorse and transfer title documents during the lending process accessing TradeTrust using DocuTrade. Upon presentation of trade documents release of funds with the use of smart contracts is done. For more on the company and joining pilots please visit https://www.xdctrade.network/
DocuTrade developed by Yodaplus ensures seamless creation and management of all types trade documents, like eBL, invoice, COO, warehouse receipts etc. This solution is developed on XDC Network and uses TradeTrust utility for streamlining trade documentation processes for trade participants. For more on DocuTrade please visit https://docutrade.yodaplus.com/
Propine holds the Capital Markets Services (CMS) license for custody from the Monetary Authority of Singapore (MAS). Borrowers and lenders are on-boarded after stringent KYC process. They also hold license to deal in digital payment tokens under Payment Services Act from MAS.For more please visit https://propine.com/