- XinFin XDC Network’s Singapore COO predicts global blockchain adoption due to the legal acceptance of digital trade documents.
- The XDC Network team says it is set to bridge the $19 trillion trade finance asset class through tokenization.
- Previously, Tradeteq partnered with XinFin XDC network to launch the first regulated token, TRADA.
Sunil Senapati, the COO at XinFin XDC Network, predicts a significant rise in blockchain adoption in trade finance due to the legal acceptance of digital trade documents, such as the Electronic Trade Documents Bill (HL Bill 57), recently introduced in the UK Parliament.
Senapati expressed this sentiment in an interview at the Citi Group’s 10th Digital Money Symposium 2023, arguing that “around 80% of world trade is based on English law.” He forecasted that the percentage of global trade flows involving digitized processes and blockchain technology will reach two digits by 2025. He added:
By 2030 and beyond, we will likely see greater adoption, with interoperability taking the digitized flows to higher percentages. Wider adoption will require simpler applications, low or no costs to use the basic functionalities, and new liquidity providers to support the trades.
In 2021, the XDC Network created by XinFin was selected as the first blockchain company to join the global Trade Finance Distribution (TFD) Initiative, a consortium of trade originators, credit insurers, and institutional funders on a mission to boost automation and transparency in trade asset and risk distribution.
In a welcoming address, the chairman of the Fintech Committee at the International Trade and Forfaiting Association said the XDC Network would enable them “to bridge the $19 trillion trade finance asset class with any type of funder through tokenization and digital assets.”
In 2022, Tradeteq, a member of the World Economic Forum, partnered with XinFin to launch TRADA tokens, the first regulated, trade finance-backed fungible security tokens. TRADA tokens are expected to improve liquidity for the trade finance sector by securitizing an illiquid asset class on XinFin’s XDC Network.
Notably, ICC (International Chamber of Commerce), Trade Finance Global & World Trade Organization Whitepaper Periodic Table mentioned the XDC Network trade finance platform TradeFinex. TradeFinex specializes in the deployment of tokenized assets on Public/Private Blockchain Networks via regulator-friendly instruments to resolve electronic Bills of Lading (eB/Ls) issues. Also, in November 2020, the World Trade Organization introduced Tradefinex and XDC in their book BLOCKCHAIN & DLT IN TRADE: WHERE DO WE STAND?
XinFin XDC Network is a global, open-source, delegated proof of stake consensus network, enabling hybrid relay bridges, instant block finality, and interoperability with ISO 20022 financial messaging standards.
The network’s hybrid architecture is designed to support institutional use in trade finance and tokenization and is equipped to reduce the existing finance gap in global infrastructure. With interoperable smart contracts, 2,000 transactions per second, and Ethereum Virtual Machine compatibility, the XDC Network is reported to provide a scalable infrastructure for enterprises and independent community contributors.
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Source: https://coinedition.com/icc-wto-citi-group-and-trade-finance-global-recognize-xinfin-xdc-networks-potential-in-trade-finance/