DocuTrade – Digitalizing Trade Finance Documentation
Blockchain-Powered Digital Promissory Notes Transform Global Trade Finance in Pioneering Pilot Transaction
SINGAPORE, October 24, 2024 /EINPresswire.com/ — A groundbreaking trade finance pilot has successfully showcased the transformative power of blockchain technology in modernizing traditional trade financing processes. The pilot transaction, valued at $49,518, enabled the purchase of fabric from China by Alltag und Gerätetechnik GmbH, a Swiss buyer, and was financed by Commodity Polska sp. Z o.o., a Poland-based liquidity provider. This innovative transaction offered the buyer 120-day short-term financing at an interest rate of 5% per annum, using a digitally signed promissory note as collateral.
The documentation process was powered by Yodaplus’ DocuTrade™ and the trade finance by XDC Trade Network (XTN)™, both adhering to ICC DSI and MLETR guidelines. The digital promissory note, compliant with ICC standards, was cryptographically signed and transferred to the liquidity provider, with the funds being provisioned through a regulated custodian account in Singapore under Monetary Authority of Singapore (MAS) regulations. This seamless process allowed the buyer to pay the seller upfront, ensuring both liquidity and security for all parties involved.
Blockchain Innovations and Efficiency
This pilot introduced significant technological advancements, including “invisible wallets,” which allowed users to sign and transfer documents without requiring complex blockchain interactions. Additionally, the integration with Propine, a MAS-regulated digital custodian, ensured full compliance with KYC/AML regulations. At the core of this system was a smart contract, acting as a decentralized, trusted intermediary, enabling secure, trustless transactions.The entire process was completed on the XDC network – enterprise-grade, open-source EVM compatible blockchain protocol.
Key Benefits
The pilot demonstrated numerous advantages, including:
Time efficiency: The transaction was completed in less than five minutes.
Cost savings: Minimal fees of just $0.00000033 made this process incredibly cost-effective.
Enhanced security: Blockchain’s tamper-proof nature safeguarded the integrity of the digital promissory note and maintained ownership control throughout the transaction.
Liquidity access: Global liquidity providers were able to instantly access funding requests, enhancing liquidity availability and offering a secure, low-risk asset class for financiers.
User-Friendly Design
The DocuTrade™ platform provides rich user experience, designed for effortless navigation and quick access to essential features. Its seamless integration capability with any ERP system streamlines data extraction, ensuring a smooth and efficient workflow.
“This successful pilot underscores the transformative impact that blockchain can have on global trade processing & bridge the trade finance gap. With DocuTrade™, we are not just digitizing documents; we are creating a secure, efficient, and compliant ecosystem that empowers businesses to engage in seamless, cross-border trade. This is a significant step forward in our mission to revolutionize international trade & commerce by digitalising extensive trade documentation involved in the existing processes,” said Nilesh Pathak, Business Unit Head, Blockchain at Yodaplus Technologies.
This pilot marks a significant leap forward in the digitization of trade finance, providing faster, more secure, and cost-effective solutions for global trade transactions. DocuTrade™ is proud to lead the way in transforming trade finance through innovation and cutting-edge digital financial instruments.
About DocuTrade™:
DocuTrade™ is a leading trade document digitization and management platform that leverages blockchain technology to provide secure, efficient, and compliant solutions for global trade finance. Developed by Yodaplus, DocuTrade™ helps businesses digitize verifiable & transferable trade documents such as bills of lading, promissory notes, and letters of credit , invoices, certificate of origin etc., ensuring compliance with international standards like ICC DSI and UNCITRAL MLETR. With its innovative technology and seamless integrations, DocuTrade™ is transforming the future of global trade.
Amit Pareek
Yodaplus Technologies Pvt Ltd
amitp@yodaplus.com
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