Tradeteq, a provider of data, technology & software to the trade finance industry, announced today it has partnered with Singapore-based eXchange inFinite (XinFin) to offer tokenized trade finance products to institutional investors and has completed its first transaction.
eXchange inFinite (XinFin), is a Delegated Proof of Stake Consensus network (XDPoS), enabling Hybrid Relay Bridges, Instant Block Finality and Interoperability with ISO20022 messaging standards, making XinFin’s Hybrid Architecture Developer friendly.
This is the first complete end-to-end transaction following a unique set of regulatory guidelines and trade finance standards. The new offering utilizes XDC Network’s blockchain technology to transform trade finance assets, which are re-packaged and distributed by Tradeteq, into non-fungible tokens.
Institutional investors can buy and sell these tokens, which represent the value of an off-chain asset. This gives token holders legal entitlement to an asset or package of assets.
On September 20th, 202, the first transaction was conducted, with invoice finance company Accelerated Payments as the asset originator. This transaction sets the standard for all future NFT-based and tokenized trade finance transactions, with additional originators expected to join over the coming weeks.
In order to ensure a seamless and secure migration of these assets from an off-chain product to an on-chain token, Tradeteq and XinFin have partnered with both a traditional off-chain asset custodian as well as a digital asset custodian.
“Trade finance is undergoing a revolution and decentralized finance will have a key role to play in the future. This project showcases some of the innovative work Tradeteq and its partners are undergoing in order to stay at the forefront of this rapidly-changing industry.”
– Christoph Gugelmann, Co-Founder & CEO of Tradeteq
The launch of the platform comes amidst a growing appetite from banks and institutional investors seeking to add digital assets to their portfolios, develop back-office technology and custody solutions and safely store asset-backed and native digital security tokens. It relied upon participation from corporates, banks, originators, and custodians, and represents a step forward in the tokenization of traditional fixed income products and investment notes.
“By working with multiple institutions and stakeholders operating in the global trade ecosystem, we are laying the groundwork for the distribution of tokenized bank-owned assets in a standardized and secure manner through the XDC Network’s hybrid blockchain ecosystem. Tradeteq’s technology will be crucial to achieving this goal.”
– Billy Sebell, XinFin’s Head of Ecosystem