Overview
- The Asian Development Bank pegs the global trade finance shortfall at $2.5 trillion in 2023, with SMEs in emerging markets bearing the brunt.
- Platforms are shifting from pilots to live issuance of tokenized invoices, letters of credit and receivables, enabling fractional ownership and secondary market liquidity.
- Settlement times are reported to drop from weeks to hours, with blockchain-based audit trails, real-time collateral monitoring and automated compliance checks.
- ISO 20022 compatibility lets networks interface with SWIFT, RTGS and correspondent banks, with platforms like XDC supporting instant settlement alongside traditional messaging.
- MLETR-style legislation in Singapore, the UK, France, Bahrain and ADGM provides legal certainty for electronic trade documents, guiding institutions toward audited smart contracts, interoperability and jurisdiction selection.