Have you come across the news creating a buzz in the trade finance world?
You got it right! It’s a recent transaction in the trade finance asset tokenization by one of the leading securitization technology firms, Tradeteq. It is the first of its kind where a trade asset finance transaction is executed on Blockchain.
Well, if you haven’t got a chance to get a glimpse of the news, here it is.
Let me brief you on how it all started.
You all know that XinFin is a global open source Hybrid Blockchain protocol with independent community contributors comprising long-term backers, network utility, and tech developers that help build various enterprise use cases. XinFin became the first Blockchain to join the Trade Finance distribution (TFD) initiative a while ago. The initiative was established to address the business and regulatory frameworks impacting market participants in the distribution and investments related to trade finance. In addition, the initiative aims to define new tech-based market practices and data specifications so that transparency and accessibility are enhanced in the trade finance flows.
Xinfin has partnered with Trade Teq, a Europe-based company, to offer tokenized trade finance products to institutional investors. This trade finance transaction on Xinfin (XDC Network ) is the first end-to-end trade finance-based non-fungible token (NFT) transaction adhering to a set of regulatory guidelines and trade finance standards. Thus, it has embarked upon a new journey, opening up opportunities for market participants to further the innovation in the trade finance distribution space, especially around DLT.
The offering was created utilizing XDC Network’s enterprise-grade blockchain technology for transforming the trade finance business. The trade finance assets are repackaged and distributed by Trade Teq as non-fungible tokens. Further, these tokens representing the value of an off-chain asset can be traded (buy &a...