Banker or Financier

Benefits

Enhanced Customer Experience

Make banking transactions faster, easier for customers and less costly for international trade operations

De-Risk Trade Financing

Traceability of ownership, identity and authenticity verifications reduce human errors and risk of fraud, such as double financing

New Business Opportunities

Tokenised assets and fractionalisation provide liquidity to bridge the trade finance gap

How TradeTrust can help in Financial Services

1. Support digital ledger payment commitment

   Trade finance activities are notoriously paper-heavy.

   TradeTrust can transform the management of digital ledger payment commitments by providing a secure, transparent, and immutable platform for recording and managing payment obligations using blockchain and distributed ledger technologies. This enhances the security and transparency of payment commitments, streamlining the overall payment process, and reducing the risk of disputes and errors.

   Banks and alternative financiers can integrate physical, financial, and document chains, automating key processes such as document validation, payments, and fund release upon meeting conditions. By offering digital trade finance, it provides overall convenience and cost savings for all parties in the supply chain, faster trade transactions, and improved document checks for compliance and validity, thereby providing assurance to financial institutions, banks' customers and their trading partners.

2. Mitigate risk & compliance checks

   Trade finance banks often rely on bills of lading (BLs) as security for the transactions they finance. In the event of cargo loss and customer insolvency, the bank's security could be significantly compromised if the BL does not provide rights of suit against a carrier for loss in transit or failure to properly care for the cargo.

   TradeTrust-enabled trade documents are supported by statutory laws aligned with UNCITRAL’s Model Law on Electronic Transferable Records (MLETR). The use of TradeTrust-enabled electronic Bills of Lading (eBLs) could offer greater assurance to banks for their security interests, as immutable records of ownership are maintained on a blockchain, represented by an endorsement chain that also serves as an audit trail. As you can trace the ownership and holdership of documents, this helps to prevent double or multiple financing.

   Learn more in the legality guide.

3. Tokenised and fractionalised digital assets for financing

   Traditional banks and alternative financing platforms have long provided liquidity and capital to businesses.

   By tokenising real-world assets through the use of bills of lading, account receivables and warehouse receipts, it becomes possible to trade and finance smaller fractions of assets. This revolutionises the investment process, opening up new opportunities in both the supply and demand sides of the market. This improves access to working capital financing for exporters/importers and fills the trade finance gap.

Possible Use Case

• Pre-shipment/Post-shipment trade finance services

• Documentary collection and advising services

• Enhance the credibility of documents issued by banks

• Letter of Credit Negotiation/Discounting

• Customers' onboarding - for example, the ACRA's Business Profiles and Business Certificates received from customers, which utilise the same technology as TradeTrust, allow for instant verification of authenticity, expediting the onboarding process by banks in Singapore.

Learn more about how TradeTrust works.