XinFin and Trace Financial to provide blockchain powered counterparty risk mitigation

Trace Financial, a financial messaging and integration provider for global financial institutions and an integration partner for SWIFT MT-MX messages, has signed a partnership agreement with the XinFin Network through its Abu Dhabi Global Markets (ADGM) sandbox entity.

XinFin is an open source enterprise-ready Hybrid blockchain for global trade and finance. It combines the power of public and private blockchains with interoperable smart contracts.

As a part of this partnership, TradeFinex Tech Ltd. will offer Trace Financial’s flagship product, Transformer, through XinFin Network masternodes. Transformer performs financial message mappings using any format including financial standards such as SWIFT MT-MX, ISO 8583, MT1X, MT5X, MT7X, etc.

During the PoC stages, XinFin will extend Transformer to financial institutions that run XinFin Network masternodes in the testnet environment. Financial institutions will be able to make use of platform built over XinFin Network to relay legacy financial messaging to a blockchain identity in the form of a smart contract that enables counterparty risk mitigation of different type of financial instruments through secondary markets.

Going forward, the Transformer will help financial institutions convert their traditional messaging formats for financial instruments into a blockchain recorded identity that enables counterparty risk mitigation through secondary market channels.

Excited over the partnership, Paul Ruskin, Director of Business Development at Trace Financial said, “Transformer is used extensively by financial institutions for their financial instruments messaging transformations. We are happy to engage in a partnership with ADGM regulated TradeFinex Tech Ltd. that will blockchain-enable the traditional financial messaging on an ISO20022 standard; mapped as a digital identity on KYC-enforced XinFin Network.”

Atul Khekade, Director of TradeFinex Tech Ltd. and Co-Founder of XinFin Network said, “We are excited to partner with one of the leading companies in financial instruments messaging. XinFin Network will complement the legacy financial instruments messaging by making it interoperable with XinFin Network, an enterprise-friendly blockchain network focused towards solving problem points in global trade and finance. Counterparty risk mitigation remains a challenge for financial instruments globally and we need to set up an easy-to-use platform in a compliant environment for financial institutions to quickly go through PoC and Pilot projects via our sandbox environment with Abu Dhabi Global Markets.”

The XinFin hybrid blockchain employs Delegated Proof of Stake (DPoS) Consensus which brings singularity of validator nodes (full nodes) into the picture, making the whole network more democratic, more trustworthy, more stable, and more self-sustainable. Masternodes are benefitted in the form of reputation building, enhanced reliability, increased incentive gains, and capability to deploy their own dApp/use case on the network.

TradeFinex, a dApp based on top of the XinFin hybrid blockchain network, is an open standard protocol for global trade and finance aiming to mitigate counterparty risks by enabling financial instruments to be more interoperable and liquid. An Open API platform ready to connect, TradeFinex has initiated a consortium with open invitations to address peer-to-peer trade finance and asset tokenization of real-world assets. TradeFinex invites Global Public Investors (GPIs), regulators, fintech companies, and financial and government institutions for the same.

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