Tinder for global trade finance? Let’s swipe right to explore more!
Exciting changes are happening in global trade, with a digital transformation leading the way. One significant change is the move toward tokenizing trade flows. This means there’s an excellent opportunity to boost global economic growth.
One particular shift I am seeing is the move to electronic – and – hopefully tokenized bills of lading (eBLs). These hold a lot of promise for making trade financing more efficient and accessible. By using blockchain technology, eBLs become unique, unchangeable documents that can be utilized as financial tools. When paired with smart contracts, products in transit can be turned into tangible assets, allowing for instant trade and payment.
Tokenized eBLs become unique, unchangeable documents, turning products in transit into tangible assets.
But while tokenized bills of lading are a big step forward, they’re just one part of the bigger picture. We know potential financiers need more than digital BLs to make intelligent decisions. It’s like buying stocks — you need (constant and real-time) knowledge and information. Therefore, the goal is to give people involved in trade finance the tools they need to make informed choices. The aim should be for automated processes to mediate between parties that need financing and parties that can borrow money — a kind of Tinder for global trade.
The aim should be to mediate between parties that need financing and parties that can borrow money — a kind of Tinder for global trade.
To do this, the financier needs more than just eBLs. He also needs additional information about the risk of cargo in transit. We can build detailed risk profiles by collecting data from IoT devices on cargo, carriers, port operators, weather, social media, and more. The aim shall be to make this data accessible to everyone involved while keeping it safe and controlled.
Trade financing, powered by tokenized eBLS, could close the $25 trillion trade finance gap.
The potential benefits for global trade are huge. Powered by tokenized eBLs and reliable data, trade financing could close the $25 trillion trade finance gap. This could create new opportunities for thousands of companies to manage cash better and cut costs.